If the United States Has a Net Export Deficit,which of the Following

question 211

Multiple Choice

If the United States has a net export deficit,which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

• A)The balance on the financial account must equal the balance on the current account.
• B)Net foreign investment must be negative as well.
• C)Domestic private saving must be less than net foreign investment.
• D)Domestic public saving must be less than net foreign investment.

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Definitions:

Consumer Ethnocentrism

The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.

Economic Integration

The process by which countries reduce barriers to trade and coordinate their economic policies to improve economic cooperation and integration.

Global Marketing

The process of conceiving and executing marketing activities that recognize the differences and similarities across international boundaries.

GDP

Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.