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.
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If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?
a. Its wage always equals its marginal revenue product. b. Its wage is always greater than its marginal revenue product. c. Its wage is always total revenue minus marginal revenue product. d. Its wage is always less than or equal to its marginal revenue product.
Which of the following is correct concerning the long-run Phillips curve?
a. Its position is determined primarily by monetary factors. b. If it shifts right, long-run aggregate supply shifts right. c. It cannot be changed by any government policy. d. Its position depends on the natural rate of unemployment.
If the total cost of producing 300 leather jackets is $400 and the total cost of producing 301 leather jackets is $435, what is the marginal cost of production at 300 leather jackets?
(A) $835 (B) $435 (C) $35 (D) $400
Nonresidential investment does NOT include
A. copy paper. B. office chairs. C. computers on desktops. D. software.