Multiple Choice
The People's Republic of China has had a large trade surplus in recent years. What is the most likely explanation of this surplus?
A) China has a high rate of inflation, which reduces the value of its currency.
B) China has a large supply of labour, so low wages give it a competitive edge.
C) China has many trade barriers, which restrict the ability of other countries to sell their products in China.
D) China has a large amount of saving relative to domestic investment.
Correct Answer:
Verified
Correct Answer:
Verified
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