Which of the Following Statements About World Trade Flows Is

question 84

Multiple Choice

Which of the following statements about world trade flows is most accurate?

• A) The EU (European Union) is the world leader in terms of GDP (gross domestic product).
• B) The relative position of the United States as a supplier to the world has increased despite an absolute growth in exports.
• C) The United States' role as a marketplace for the world has increased, especially for automobiles, oil, textiles, and consumer electronics.
• D) The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
• E) The United States' relative role as an exporter changed dramatically when it became a service-oriented economy.

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by reporting these profits as income.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.