Suppose That the Rest of the World Experiences a Recession

question 29

Multiple Choice

Suppose that the rest of the world experiences a recession causing a decrease in foreign output. This decrease in foreign output will not cause which of the following to occur?

• A) The domestic country's consumption to decrease.
• B) The domestic country's imports to decrease.
• C) The domestic country's trade balance to improve.
• D) The domestic country's output to decrease.
• E) The domestic country's trade balance to worsen.

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Definitions:

Outsourcing Decision

The process by which a company decides whether to allocate specific operational tasks or processes to external vendors rather than completing them internally.

Design Phase

A preliminary stage in the development process where the specifications, features, and requirements of a project are defined.

Supply Chain Function

The activities and operations involved in moving a product from the supplier to the customer.

Supply Chain Profitability

The overall financial gain achieved throughout the supply chain, from suppliers to end consumers.