In a Recession,the Trade Balance Often Improves Because

question 3

Multiple Choice

In a recession,the trade balance often improves because

• A) service exports exceed manufactured good exports
• B) banks sell depressed assets
• C) fewer households can afford luxury imports
• D) direct investment abroad declines
• E) the capital account exceeds the current account

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Definitions:

Overseas Markets

Overseas Markets denote the markets located outside the country of origin where goods, services, and investments are traded.

Existing Capabilities

The current skills, technologies, processes, and resources that an organization possesses.

PEST Analysis

A strategic management tool used to evaluate the Political, Economic, Social, and Technological external factors affecting an entity.

Sociocultural Factors

Sociocultural factors are the social, cultural, and environmental influences that affect individuals' behaviors, attitudes, and preferences, impacting societal norms and individual interactions.