Consider an Increase in a Country's Current Account Deficit

question 33

Multiple Choice

Consider an increase in a country's current account deficit.Which of the following statements best describes the desirability of this change?

• A)It is desirable regardless of the cause of the change.
• B)It is undesirable regardless of the cause of the change.
• C)It is not desirable if it is caused by an increase in domestic investment.
• D)It might be desirable depending on the cause of the change.
• E)It is desirable if it is caused by a reduction in the level of private saving.

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Definitions:

Value Chain

All the value-creating activities undertaken by the company.

Multidomestic Strategy

a marketing strategy that involves tailoring products or services to fit the needs and preferences of different national markets.

Cultural Trends

Patterns of behavior, practices, beliefs, and values that are prevalent within a society at a particular time, often influencing various aspects of life and business.

Differentiation Strategy

A business approach aiming to distinguish a product or service from competitors' offerings through unique features, quality, or brand image.