Which of the following statements about the United States-China bilateral trade balance is correct?
A) It is a good indicator of the inequality of imports and exports between the United States and China.
B) It vastly understates the gap in imports and exports between the United States and China.
C) It may overstate the gap in imports and exports between the United States and China because some material inputs used to produce Chinese exports do not originate in China.
D) It shows that there is balanced trade between the United States and China.
Correct Answer:
Verified
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