18
QuizMultiple Choice

The Global Economy — Test

Question 18 • Economics and Personal Finance

How does globalization cause the foreign sector to influence the economy?

Answer
A
The foreign sector influences how imports and exports move between firms and households.
B
The foreign sector influences how services move between firms and households.
C
The foreign sector influences how goods move between firms and households.
D
The foreign sector influences how factors of production move between firms and households.

Explanation

Globalization connects domestic economies with other countries through international trade. The foreign sector affects the flow of imports into the country and exports sent abroad, linking firms and households to goods and services from other economies. Therefore, the best choice is “The foreign sector influences how imports and exports move between firms and households.”

AI-written and checked against the verified answer.

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