Question

g A firm in the United Kingdom hires a firm in the U.S. to train its managers. By itself this transaction a. increases U.S. imports and decreases U.S. net exports. b. increases U.S. imports and increases U.S. net exports. c. increases U.S. exports and decreases U.S. net exports. d. increases U.S. exports and increases U.S. net exports.

Answer 1

Option “D” increases (rise) U.S. exports and increases U.S. net exports.

Step-by-step explanation:

Option “D” is correct because when the United Kingdom hire a firm in the U.S. that means the export of the U.S has increased and import of the United Kingdom has increased. The net export is the amount that comes after subtracting the import from export so an increase in U.S. export will show the increase in U.S net export.