Importing more than exporting is trade surplus trade deficit balance of trade balance of payment. Suppose the exchange rate between the United States and Japan changes from $1 = 100 yen to $1 = 110 yen. What would happen to the prices of American goods in Japan? increase or decrease remain the same decrease increase. What is a currency system in which each country tries to keep the value of its currency constant against one another called? fixed exchange rate floating currency exchange flexible exchange rate constant pricing. The MAIN purpose of a tariff is to: promote greater specialization within industries. provide revenue to support continued trade. protect domestic industry from competition. provide the government with revenue. Generally, a nation should probably specialize in those products: for which worldwide demand is high. for which its needs are greatest. in which it has absolute advantage. in which it has comparative advantage.
