An Example of a Deficit Item on the U

question 166

Multiple Choice

An example of a deficit item on the U.S. balance of payments is

• A) the sale of a spark plug made by a U.S. firm in Michigan to a Nissan plant in Tennessee.
• B) the purchase of Japanese yen by a U.S. firm.
• C) a deposit in a bank in Chicago by the government of Saudi Arabia.
• D) the payment of a dividend by a British firm to a U.S. family.

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Definitions:

External Environment

Factors outside of an organization that can affect its performance, including economic, social, technological, and political conditions.

Environmental Impact

The effect or influence of human activities on the natural environment, including changes to ecosystems, biodiversity, and climate.

Increasing Uncertainty

The situation in which the amount of unpredictability in the environment or the future outcomes of decisions is rising.

Managerial Experience

The accumulation of knowledge, skills, and expertise that an individual has acquired through holding managerial positions over time.