Trade deficits with china and mexico


Question 1: Explain the USA's large trade deficits with China and Mexico according to the Hecksher-Ohlin Theory.

Question 2: Explain why and how do you think the US dollar became a "Reserve Currency".

Question 3: Discuss your ideas on whether the particular trend in America's international trade has been good for the country. Give your reasons for your argument. What will happen to the US dollar's role as a reserve currency? Is this good or bad or does it not matter? Make sure you discuss and answer each point.

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International Economics: Trade deficits with china and mexico
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