the united states has fought three major wars in modern times: world war 2 the korean war and the vietnam war. if you sum the years that each conflict ended the result is 5871. The vietnam war ended 20 years after the korean war and 28 years after world war 2 in what year did each end? Solution let three war years be a,b, c now, a+b+c= 5871 c= b+20 and c=a+28 then, c-20+c-28+c=5871 3c=5919 c=1973 so, three war years are : 1973, 1953, 1945.

1. The United States is a net exporter of services to China. What does this imply about the
magnitude of the deficit in the U.S. balance on goods and services with China compared with the
size of the U.S. merchandise trade deficit with China?
Why does a portion of Chinese residents' expenditures on goods and services exported from the
United States to China likely add to the earnings of Chinese firms and those firms' managers and
workers?
Solution
(1)
The Trade balance with a country is the total exports of goods & services to the country, less the
total imports of goods & services from that country. It can be expressed as:
Trade balance = Merchandise trade balance + Services trade balance
= (Merchandise exports - merchandise imports) + (Services export - services imports) ...... (1)
When the US is net exporter of services to China, it means:
US services exports to China > US services imports from China
If US has merchadise trade deficit with China, it signifies:
US merchadise exports to China < US merchadise imports from China
Therefore, the first component of Trade balance as in equation (1) is negative & the second
component is positive. The overall net balance can be positive or negative depending on which
component is higher in value & outweighs the other.
This can be concluded that, if US was a net importer of services to China, the Trade balance
would be lower (Since there is a trade deficit, we can say that this case would increase the
overall trade deficit) that the present case, when US is a net exporter of services. The Trade
balance increases (Trade deficit reduces) by the amount of Net export of services to China.
[NOTE: The exact quantitative impact could be computed if numerical data were provided]
(2)
A part of Chinese domestic consumers' spending on imports (from US) adds to the earnings of
domestic firms (and workers) because, imports are a component of other components of
aggregate demand too, like consumption, investment or even government expenditure. Many
domestic firms use imported products as part of their inputs or intermediate inputs. Thus, the
portion of imports that are used as raw materials, are used in domestic production of goods,
which will add to the domestic output, income and employment. In particular, increased output
will contribute to earnings of workers of the firms to produce the output.