Question

The chart shows a circular flow model describing the movement of goods and services.A circular flow model describes the movements of goods and services. Goods and services move from firms to households. Imports move from households to the foreign sector. Exports move from the foreign sector to firms. The factors of production influence the movement of imports and exports.How does globalization cause the foreign sector to influence the economy

Answer 1

b

Step-by-step explanation:

Answer 2

Answer: b. The foreign sector influences how imports and exports move between firms and households.

Step-by-step explanation:

The foreign sector provides goods and services to households from other countries but this is usually done via a firm in the country.

Goods therefore come in via imports from outside the country from the foreign sector exporting goods and services to local firms. These firms would then pass it on to households completing a circle of the foreign sector influencing how exports move between firms and households.