In Direct Exporting, a U

question 20

True/False

In direct exporting, a U.S. company signs a sales contract with a foreign purchaser that provides for the conditions of shipment and payment of goods.

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Definitions:

Price Level

The price level is a measure of the average prices of goods and services in the economy, indicating the purchasing power of money.

Real Output

Measure of economic output adjusted for price changes; refers to the quantity of goods and services produced in an economy.

Stagflation

A situation in an economy where the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.

Oil Prices

The cost per barrel of crude oil as determined by global supply and demand factors.