A country highly productive in manufacturing typically generates a merchandise trade deficit.

Question

Quizplus · Accepted Answer

A country highly productive in manufacturing typically has a strong export industry, which should lead to a merchandise trade surplus, not a deficit. However, it is possible for factors such as import dependence on raw materials or high domestic consumption to create a trade deficit even in a highly productive manufacturing country.

A Country Highly Productive in Manufacturing Typically Generates a Merchandise