The Corporate Practice of Acquiring or Producing Quality Goods or Services

question 16

Multiple Choice

The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic production is called _____.

• A) outsourcing
• B) exporting
• C) importing
• D) foreign investment
• E) trading

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the net trade balance of goods and services.

Interest Rates

The share of a loan levied as interest on the borrower, typically indicated as an annual percentage of the unpaid loan amount.

Twin Deficits

Refers to the situation where a country is running both a fiscal deficit (government spending exceeds revenue) and a current account deficit (imports exceed exports).

Budget Deficit

The condition when a government spends more than its income, requiring it to borrow money or accumulate debt to cover the gap.