ABC Manufacturing, a Company Based in the United States, Buys

question 24

Multiple Choice

ABC Manufacturing, a company based in the United States, buys products from China and sells them in U.S. markets. This practice refers to __________.

• A) importing
• B) insourcing
• C) exporting
• D) franchising

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Definitions:

Trade Surpluses

A situation where a country exports more than it imports, resulting in a positive balance of trade.

Gross Saving Rate

The proportion of total national income that is not spent on consumption or taxes, indicating the amount saved.

Gross National Income

An economic metric that totals the domestic and foreign output of residents of a country, including product taxes and minus subsidies not included in the valuation of output.

APC

Average Propensity to Consume, which measures the fraction of income spent on consumption out of the total income.