Define international trade and international financial transactions. Give an example of each one.
What will be an ideal response?
International trade refers to either purchasing or selling currently produced goods or services across international borders. An example of international trade is the purchase of Italian tile by a U.S. tile distributor. International financial transactions refer to the transfer of ownership for real or financial assets between the citizens of different countries. An example of an international asset transaction is the purchase of a U.S. stock by a Japanese citizen.
You might also like to view...
Part of the effect of higher interest rates on residential construction is through
A) inflationary expectations. B) credit rationing. C) the expected value of the homes to the buyers. D) the income effect.
Disequilibrium occurs due to the absence of government intervention in certain markets
Indicate whether the statement is true false.
Many economists argue that items such as food and clothing should be exempt from sales tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over
A. equity. B. efficiency. C. economic stability. D. economic growth.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.