The Complementary Nature of Economic Flows Internationally, Whereby Imports Stimulate

question 77

Multiple Choice

The complementary nature of economic flows internationally, whereby imports stimulate exports and vice versa, is called ________ and is one argument for free trade among nations.

• A) the balance of trade
• B) countertrade
• C) exchange trade
• D) the trade feedback effect
• E) global market trading

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Definitions:

Business Owner

An individual or entity that legally possesses a company, is responsible for its operations, and enjoys the benefits of its success.

Penniless

Refers to having no money; being very poor.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal circumstances.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of the parties involved.