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The correct answer is the first option, Vespucci. Amerigo Vespucci was an Italian explorer who studied the work of Ptolemy and, in doing so, found that if Asia was as far east as Columbus had thought it was, it would cover half the Earth. He not only discovered that Asia was in fact smaller than what Columbus had thought it was, but also that the size of the Earth was much bigger than what most people thought it to be.
The correct answer is <em>D) American firms purchasing industrial equipment from German companies</em>.
The balance of trade is the difference between a nation's exports and imports in a given period. A nation is considered to have a trade surplus when its exports exceed its imports. On the other hand, it is considered to have a trade deficit when its imports exceed its exports.
The United States currently holds a trade deficit. In this case, the purchase of German equipment represents a contribution to the total imports of the United States. Therefore, there is a growth in the trade deficit of the country.
