A Canadian Computer Maker Sells Computers to a Czech Republic

question 192

Multiple Choice

A Canadian computer maker sells computers to a Czech Republic firm. This company uses all of the revenues from this sale to purchase stock in a Czech Republic company. What happens to Canadian net exports and net foreign investment due to these transactions?

• A) They will increase both Canadian net exports and Canadian net foreign investment.
• B) They will decrease both Canadian net exports and Canadian net foreign investment.
• C) They will increase Canadian net exports and will decrease Canadian net foreign investment.
• D) They will decrease Canadian net exports and will increase Canadian net foreign investment.

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Definitions:

Advanced Planning Systems

Sophisticated software solutions designed to optimize supply chain operations, from resource planning to production and distribution.

Computing Power

The capacity of a computer system to perform or process data, usually measured in terms of speed and computational ability.

Aggregate Plan

A production plan for a medium term that lays out levels of output, inventory, staffing, and other decisions that affect the overall operations.

Forecast Errors

Mistakes or deviations from the actual demand in predicting future sales or demand.