Increased Foreign Competition Tends To

question 19

Multiple Choice

Increased foreign competition tends to:

• A) Intensify inflationary pressures at home
• B) Induce falling output per worker-hour for domestic workers
• C) Place constraints on the wages of domestic workers
• D) Increase profits of domestic import-competing industries

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Definitions:

Balance of Payments

A record of all transactions made between entities in one country and the rest of the world over a period of time, including trade, services, and financial transfers.

Foreign Aid

Financial or other assistance provided by one country to another, often in the form of grants, loans, or technical assistance.

Private International Borrowing

The process where private sector entities or corporations obtain loans from foreign lenders, often affecting international capital flow.

Food for Peace Program

A U.S. government initiative aimed at reducing hunger and enhancing food security internationally through food aid and development assistance.