Answer to Question #38252 in Economics for Phyllis

Question

We say: “We buy many goods produced in China, but they buy nothing from us.” Using your understanding of international trade, is this likely a true or false statement? If it is likely false, can you give an explanation as to why so many Canadians believe the statement is true? If the statement were true, and Canada and China were the only two countries in the world, why would importing many Chinese products and exporting nothing to China be great for Canada but bad for China?