Statement I: Our oil imports and our trade deficit with Japan and China together account for the majority of our overall trade deficit.
Statement II: Although the Chinese market is open to American producers,the Chinese people have very little income to purchase relatively expensive imported goods.

Question

Quizplus · Accepted Answer

Both statements highlight significant aspects of the U.S. trade deficit and the dynamics of trade with China. Statement I points out the substantial impact of oil imports and trade with Japan and China on the U.S. trade deficit. Statement II addresses the issue of market access versus purchasing power in China, indicating that despite market openness, the purchasing power for expensive imports is limited.

Statement I: Our Oil Imports and Our Trade Deficit with Japan