If Net Exports Are Negative, Then

question 135

Multiple Choice

If net exports are negative, then

• A)net capital outflow is positive, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• B)net capital outflow is positive, so American assets bought by foreigners are greater than foreign assets bought by Americans.
• C)net capital outflow is negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• D)net capital outflow is negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.

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Definitions:

Domestic Subsidies

Financial aid provided by a government to support a domestic industry or sector, reducing the cost of production or services for national companies.

Import Licensing

A government policy requiring businesses to obtain official permission before importing certain goods, often used to control the amount of goods entering a country.

European Works Council

A body representing European employees, established to provide information and consultation rights on transnational matters affecting workers in the European Union.

Collective Bargain

A method of discussion between employers and employee representatives aimed at achieving mutual agreements to govern work environments.