Benin is an African country with a small open economy. An increase in Benin's trade deficit is more likely due to the following EXCEPT:

Question

Quizplus · Accepted Answer

An increase in Benin's trade deficit is not likely to be due to an increase in exports in comparison to imports.
Key Takeaway: A small open economy is vulnerable to trade deficits if imports in a given year are much higher than exports. Lower manufacturing bases and decreased productivity lead to a reduction in exports and a likelihood that a country imports much of its goods and services. This will lead to a trade deficit.

Benin Is an African Country with a Small Open Economy