Which of the following statements about world trade flows is most accurate?
A) China is the world leader in terms of GDP (gross domestic product).
B) The relative position of the United States as a supplier to the world has increased because of an absolute growth in exports.
C) The relative position of the United States as a supplier to the world has diminished despite an absolute growth in exports.
D) The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
E) It is impossible to compare GDPs of different nations since it is an internal measurement of economic activity.

Question

Quizplus · Accepted Answer

Although the United States has experienced an absolute growth in exports, it has not kept pace with the growth of other countries, causing its relative position as a supplier to the world to diminish. This is due in part to the rise of emerging economies such as China and India, which have become major players in world trade. Option A is incorrect because China is the leader in terms of GDP, not world trade flows. Option B is incorrect because while the United States has seen absolute growth in exports, its relative position has decreased. Option D is incorrect because there is no information given about the aerospace industry. Option E is incorrect because GDP can be compared across different countries using methods such as purchasing power parity.

Which of the Following Statements About World Trade Flows Is