Question
The U.S. economy has become a less closed economy over the past 50 years.
True
False
True
False
Ask by Lambert Ryan. in the United States
Mar 20,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The U.S. economy has become less closed over the past 50 years.
Solution
The statement “The U.S. economy has become a less closed economy over the past 50 years” is True.
Explanation:
-
Definition of a Closed Economy: A closed economy is one that does not engage in international trade; it does not import or export goods and services. In contrast, an open economy engages in trade with other countries.
-
Historical Context: Over the past 50 years, the U.S. has significantly increased its levels of international trade. This includes both imports and exports of goods and services.
-
Trade Agreements: The U.S. has entered into numerous trade agreements, such as NAFTA (now USMCA), the WTO agreements, and various bilateral trade agreements, which have facilitated increased trade with other nations.
-
Globalization: The trend of globalization has led to more interconnected economies, and the U.S. has been a major player in this process, further integrating its economy with the global market.
-
Economic Indicators: Various economic indicators, such as the ratio of trade (exports + imports) to GDP, show that the U.S. economy has become more open over the decades.
In conclusion, the U.S. economy has indeed become less closed over the past 50 years, making the statement true.
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution Bonus Knowledge
True! Over the past half-century, the U.S. economy has shifted towards being more open, engaging in increased trade and investment with the rest of the world. The rise of globalization, advancements in technology, and changes in trade policies have all contributed to a significant growth in international trade as a percentage of the U.S. GDP, making it less closed.
As a result, American consumers enjoy a wider array of products from global markets, while businesses can source materials and labor from abroad. This interconnectedness has fostered innovation and competition, although it also poses challenges like dependency on foreign supply chains.
