If a Country Runs a Deficit in Its Current Account

question 155

Multiple Choice

If a country runs a deficit in its current account, it is because

• A)exports exceed imports
• B)imports exceed exports
• C)net unilateral transfers are negative
• D)foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers
• E)foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers

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Definitions:

ALCOA Case

A landmark legal case involving the Aluminum Company of America, which led to significant developments in antitrust law regarding monopolies.

Vertical Merger

A merger between companies in the same industry but at different stages of production or distribution process.

Horizontal Merger

A horizontal merger is a business consolidation that occurs between firms who operate in the same industry, often leading to synergies, increased market share, and potentially higher market power.

Conglomerate Merger

A merger between firms that operate in entirely different industries, often aimed at diversification and risk reduction.