Question

If IBM manufactures a computer in the United States and sells it to a French business firm in Paris, it will cause an increase in:_________a. Net exports.b. Imports.c. Both investment and net exports.d. Government expenditures.e. Consumption.

Answer 1

Answer:

B

Explanation:

When goods produced in a country are sold to other countries, it is known as export.

When a country purchases a foreign produced good, it is known as import

the difference between export and import is known as net export.

Net export increases when export increases and decreases when import decreases.

As a result of the sale of the computer, US net export would increase and France's net export would decrease.