If a Country Is Exporting More Goods and Services Than

question 4

Multiple Choice

If a country is exporting more goods and services than it is importing, we should consider this to be "beneficial" only in the sense that it

• A)increases the standard of living through a larger national income.
• B)means that an economy is earning more than it is spending.
• C)represents an accumulation of assets for the domestic economy that can be used in the future to finance consumption.
• D)allows a country to add to its foreign- exchange reserves above the level needed to cope with fluctuations in private payments.
• E)is a necessary condition to enable a country to take full advantage of scale economies.

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Definitions:

Professional Associations

Organizations seeking to further a particular profession, the interests of individuals engaged in that profession, and the public interest.

Shareholder Model

An approach in corporate governance focusing on maximizing the value for the shareholders, the owners of the company.

Corporate Governance

The system by which companies are directed and controlled, involving the mechanisms, processes, and relations by which corporations are regulated and operated.

Management Fixated

Refers to an organizational focus predominately on management perspectives, often at the expense of considering employee viewpoints or other stakeholder interests.