Assume the U.S. has a balance of trade surplus with the country of Thor. When individuals in Thor manufacture CDs and DVDs that look almost exactly like the original product produced in the U.S. and other countries, they ____ the U.S. balance of trade surplus with Thor. This activity is called ____.

Question

Quizplus · Accepted Answer

When individuals in Thor manufacture counterfeit goods that look like the original product produced in the U.S., they reduce the demand for U.S. goods and thus reduce the U.S. balance of trade surplus. This activity is called pirating or counterfeiting.