Question

Which of the following statements about the financing of international trade is correct? A.International trade means...

Which of the following statements about the financing of international trade is correct?

A.International trade means the trading of financial assets for foreign exchange
B.Most international transactions are made with gold.
C.Imports are more important than exports to the economy of a nation.
D.Exports provide the foreign currencies needed to pay for imports.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option D

D. Exports provide the foreign currencies needed to pay for imports.

.International trade means the trading goods and services between two or more countries and it exchanged in different currencies and not gold. The imports need to be paid in the same currency or an international currency like dollar and that earned from export. It is like a family revenue is earned from export and expenses is down on import, so the trade balance is an income of the family, assuming a country as a family.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2. Which of the following statements is (are) correct? (x) The increase in international trade in...
2. Which of the following statements is (are) correct? (x) The increase in international trade in the United States during the past 50 years is partly due to improvements in transportation, advances in telecommunications, and an increase in the trade of goods that have a high value per pound. (y) Over the last 50 years U.S. exports and imports have increased and U.S. imports as a percentage of GDP have more than doubled but U.S. exports as a percentage of...
Which of the following statements best describes the relationship between a country's balance of trade and...
Which of the following statements best describes the relationship between a country's balance of trade and its government budget? ppreciate against foreign currencies, leading to an increase in imports and balance of trade surplus.   A balanced budget leads to stable domestic interest rates and increased exports, causing a balance of trade surplus.   The government budget does not affect exports or imports and therefore does not affect the balance of trade.   A budget deficit tends to increase domestic interest rates, leading...
Which of the following statements are correct for the terms-of-trade effect? Select one or more: a....
Which of the following statements are correct for the terms-of-trade effect? Select one or more: a. If a large country imposes a tariff, there will be no terms-of-trade effect. b. If a large country imposes a tariff, the terms-of-trade effect may offset the deadweight losses from the tariff on its economy. c. If a large country imposes a tariff, the terms-of-trade effect can never outweigh the deadweight losses on its economy. d. While a large importing nation can force the...
q-1 Which of the following statements is true? a With international trade but no government, AE...
q-1 Which of the following statements is true? a With international trade but no government, AE = C + Ig + NX b Negative net exports (due to "large" exports) increase aggregate expenditure beyond what it would be in a closed economy, and thus have an expansionary effect on the economy. "Foreigners are buying more domestic production!". c Positive net exports (due to "large" imports) decrease aggregate expenditure beyond what it would be in a closed economy, and thus have...
Which of the following about international trade is true? In recent decades, the volume of U.S....
Which of the following about international trade is true? In recent decades, the volume of U.S. international trade has been increasing as a share of the economy. As transportation costs decline, the volume of international trade will also tend to decline. Most international trade is between the governments of different nations. If one party to an international exchange gains, the other party must lose a similar amount.
Which of the following statements about the foreign exchange markets is incorrect? A. Much of the...
Which of the following statements about the foreign exchange markets is incorrect? A. Much of the trading volume in the FX markets can be described as speculative transactions. B. Most foreign-exchange trading takes place in London. C. The FX markets are over-the-counter markets. D. Trading volume worldwide exceeds USD 4000 billion per day.
Quotas are favoured over free international trade by:? ?consumers in the importing country and consumers in...
Quotas are favoured over free international trade by:? ?consumers in the importing country and consumers in the exporting country. ?domestic producers in the importing country and foreign producers with quota rights. ?domestic producers and domestic consumers in the exporting country. ?foreign producers without quota rights and consumers in the importing country. ?foreign consumers and domestic producers in the exporting country. Retaliation of trade restrictions can: set off still greater trade restrictions, leading to an outright trade war. recover the surplus...
Which one of the following statements is most correct about the advantages of a joint venture...
Which one of the following statements is most correct about the advantages of a joint venture as compared to a greenfield investment? Political risk is eliminated because of a local partner The local partner's contacts and reputation provide easier access to host country's capital markets Financial disclosure between joint venture partners is always transparent Political risk is eliminated because of a local partner AND The local partner's contacts and reputation provide easier access to host country s capital markets Local...
1. Which of the following describes the extent of international trade in the U.S.​ economy? A....
1. Which of the following describes the extent of international trade in the U.S.​ economy? A. Since​ 1950, U.S. imports have increased from less than 5 percent of GDP to about 30 percent in 2008. B. Since​ 1950, U.S. exports have decreased from about 11 percent of GDP to about 4 percent in 2008. C. Each​ year, the U.S. exports less than 10 percent of many agricultural crops such as rice. D. About 66 percent of U.S. manufacturing industries depend...
Which of the following statements are true? There are several, select all that are correct. Consider...
Which of the following statements are true? There are several, select all that are correct. Consider each statement on its own separate from the others listed. Question 12 options: Two reasons why financial management of a multinational company differs from that of purely domestic firms are: (1) different economic systems and (2) political risk In a monetary system with floating exchange rates, the exchange rate between two countries is determined by the relative supply and demand for their currencies Exchange...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT