Global Business

Goods purchased from the rest of the world by a country’s residents, rather than buying domestically produced items.

• Export

• Import

• Net Import

• Net Export

Imports lead to an outflow of funds from the country since import transactions involve payments to sellers residing in another country.

• True

• False

goods and services that are produced domestically, but then sold to customers residing in other countries.

• Import

• Export

• Net Export

• (X-M)

Exports lead to an inflow of funds to the seller’s country since export transactions involve selling domestic goods and services to foreign buyers.

• False

• True

(X-M) stands for?

• Net Export

• Net Import

• balanced Trade

Net exports are the estimation of the total value of a country’s imports minus the total value of its exports.

• True

• False

A positive net exports indicates ________.

• Trade Surplus

• Trade Deficit

• Balanced Trade

A trade surplus or trade deficit reflects a country’s balance of payment.

• True

• False

uncontested superiority of a country or business to produce a particular good better.

• Absolute Advantage

• Comparative Advantage

• Total Advantage

In Absolute advantage, two countries are compared with one product.

• True

• False