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.

Question

Quizplus · Accepted Answer

The U.S. firm is providing a service to the UK firm, which counts as an export for the U.S., thus increasing U.S. exports and net exports.

A Firm in the United Kingdom Hires a Firm in the U.S.to