Question

The United States trade deficit first became a problem in the 1970s because?a. The prices of imports from Japan increased dramatically.b. The prices of imports from China increased dramatically.c. The price of foreign oil was raised by APEC.d. The price of foreign oil was raised by OPEC.

Answer 1

Answer:

The price of foreign oil was raised by OPEC.

Explanation:

By the end of 1960s the foundation of OPEC (Oil producers and exporter countries) defined the collusion of some oil producer countries to increase their power over the oil market. With the political crisis in the Arab world, the OPEC to advantage of shortage in oil world supply and increase the price of oil. Being the US a net importer of oil, the increment in oil prices turned into a trade deficit in a short time.