The Chinese economy has been contracting for the past two quarters and is now in a recession. American farmers and companies are feeling the impact of the Chinese recession too, because there is now less demand from Chinese consumers for their products. As a result these American companies and farmers are now struggling to stay in business and most have had to lay off a large percentage of their workforce.
This passage best illustrates which choice below?
A.
Why free trade policies are better than protectionist policies.
B.
The effects of interdependence in the global economy.
C.
The impact trade deficits have on an economy.
D.
The importance of limiting barriers to trade.
B. The effects of interdependence in the global economy.
Below is an excerpt from a speech by President Donald Trump:
Today, I am going to talk about how to Make America Wealthy Again. We are thirty miles from Steel City. Pittsburgh played a central role in building our nation. The legacy of Pennsylvania steelworkers lives in the bridges, railways and skyscrapers that make up our great American landscape. But our workers’ loyalty was repaid with betrayal. When subsidized foreign steel is dumped into our markets, threatening our factories, the politicians do nothing. For years, they watched on the sidelines as trillions of our dollars and millions of our jobs flowed overseas as a result.
Based on this passage, which kind of trade policies did President Trump favor? Free trade policies or protectionist policies?
A.
Free Trade Policies
B.
Protectionist Policies
Part B
Which sentence from the speech best supports your answer choice from Part A?
A.
Pittsburgh played a central role in building our nation.
B.
The legacy of Pennsylvania steelworkers lives in the bridges, railways and skyscrapers that make up our great American landscape.
C.
But our workers’ loyalty was repaid with betrayal.
D.
For years, they watched on the sidelines as trillions of our dollars and millions of our jobs flowed overseas as a result.
B. Protectionist Policies
D. For years, they watched on the sidelines as trillions of our dollars and millions of our jobs flowed overseas as a result.
B. The effects of interdependence in the global economy.
This passage highlights the interconnectedness of the global economy and how a decline in the Chinese economy has repercussions for American farmers and companies. It demonstrates how economic downturns in one country can lead to negative consequences for others due to the interdependence of economies in the global marketplace.