Which of the following factors is least likely to stimulate an increase in net export demand?

Question

BlackTom AI · Accepted Answer

To determine which factor is least likely to stimulate an increase in net export demand, let's evaluate how each option would influence NX (exports minus imports).
Option a: A severe recession experienced by a major trading partner. When a partner economy shrinks, its demand for imports from other countries typically falls, reducing the foreign buyers for domestic goods. This tends to decrease, not increase, net export demand, making it the least likely to stimulate NX growth.
Option b: A substantial depreciation of the domestic currency. A weaker domestic currency makes domestic goods cheaper for foreign buyers and foreign goods more expensive for domestic consumers. This tends to raise exports and/or reduce imports, boosting net export demand.
Option c: A significant improvement in the quality and competitiveness of domestic goods, driven by innovation and efficiency. Higher quality and better competitiveness make domestic goods more attractive abroad, increasing exports and improving NX, assuming foreign demand responds positively.
Option d: A notable reduction in trade barriers, such as tariffs, increasing access to foreign markets. Lower trade barriers typically expand export opportunities, expand foreign demand for domestic products, and boost net exports.
In summary, options b, c, and d all have mechanisms to raise net export demand, whereas option a suppresses it by weakening foreign demand for the country's exports. Therefore, option a is the one least likely to stimulate an increase in net export demand.

MUF0062 Economics Unit 2 - Semester 2, 2025

Which of the following factors is least likely to stimulate an increase in net export demand?

查看解析

登录即可查看完整答案

类似问题

Australian net export spending falls when the:

Australian net export spending falls when the:

Australian net export spending falls when the:

Australian net export spending falls when the:

If inflation in Australia is higher than inflation in other countries, what will be the effect on net exports for Australia, ceteris paribus?

Which of the following factors is most likely to stimulate an increase in net export demand?

What do economists mean when they say that countries may save in the form of foreign wealth? Select one – the most appropriate answer.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单