If a Country's Purchases of Foreign Assets Exceeds Foreign Purchases

question 106

Multiple Choice

If a country's purchases of foreign assets exceeds foreign purchases of domestic assets,that country has

• A)positive net exports and positive net capital outflows.
• B)positive net exports and negative net capital outflows.
• C)negative net exports and positive net capital outflows.
• D)negative net exports and negative net capital outflows.

---

Definitions:

Personal Selling

A method of sales where businesses use individuals to sell the product after meeting face-to-face with the customer.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, leading to a reduced cost per unit.

Economies of Scope

Cost advantages that result from a company offering a range of products rather than specializing in just one.

By-product Synergy

The practice of finding valuable uses for waste or by-products generated during the manufacturing process, thereby reducing waste and potentially increasing efficiency and profitability.