Which items are considered as negative in the flow of foreign exchange for a country? |
rice being shipped to China shipping bananas to other countries low exchange rates importing finished products |
importing finished products |
The correct answer is option 4: importing finished products Negative items in the flow of foreign exchange typically refer to activities or transactions that lead to a decrease in the country's foreign exchange reserves or an increase in its trade deficit. Importing finished products is one such activity because it involves spending foreign currency to purchase goods from other countries, thus leading to a flow of foreign exchange out of the country. Options 1, 2, and 3 are not considered negative in this context:
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