Suppose Italy Lends 1

question 52

Multiple Choice

Suppose Italy lends 1.5 billion euros to other nations and borrows 1 billion euros from other nations. Italy definitely is a

• A) debtor nation.
• B) creditor nation.
• C) net borrower.
• D) net lender.

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Definitions:

Exporting

The process of selling goods or services produced in one country to a buyer in another country, typically seen as the initial step in entering international markets.

Trade Barriers

Restrictions imposed by governments on the free exchange of goods and services between countries, which can include tariffs, quotas, embargoes, and regulations.

Economic Infrastructure

The physical and organizational structures necessary for the operation of a society or enterprise, such as transportation, communication networks, and financial systems.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.