The correct answer is - D) It has contributed to a negative balance of trade.
The decreasing demand for US exports has had a negative effect on the trade deficit. This kind of situation results in an ever growing imbalance of trade, as the home made products are becoming less demanded, while the importing of goods and products is increasing, constantly making the trade deficit bigger.
That can eventually lead to an economic collapse, economic crisis similar to the Great Depression, as the country will not be able to work in that way forever. The GDP, both the nominal and the per capita, will suffer because of that, which will cause lot of unrest and opposition from the general public.
The Truman Doctrine arose from a speech by President Harry S. Truman. He established that the U.S would provide political, military, and economic assistance to all democratic nations under threat from external or internal authoritarian forces. It effectively reoriented U.S foreign policy, away from its usual stance of withdrawal from regional conflicts not directly involving the United States, to one of possible intervention in far away conflicts.
Answer: A trade barrier is a restriction on international trade.
Explanation: Trade barriers are government efforts to control/block any trades outside the country. They decrease general economic efficiency, which can be further supported by the theory of comparative advantage. Comparative advantage means that when a country produces a good for a lower opportunity cost than other areas. A country with comparative advantage makes trade-offs worth it.
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