Question

Suppose that Buckner Co., a U.S.-based MNC, is considering exporting and selling its goods abroad in Italy.
All else equal, higher interest rates in Italy would tend to ____ (increase/decrease) demand for Buckner’s products in Italy, whereas lower interest rates in Italy would tend to ____ (increase/decrease) the demand for Buckner’s products in Italy.

Answer 1

Assume Buckner Co., a US-based multinational corporation, is contemplating exporting and marketing its products in Italy.

All else being equal, higher Italian interest rates would tend to boost demand for Buckner's products in Italy, while lower Italian interest rates would tend to decrease demand for Buckner's products in Italy.

What exactly does the term "exporting" mean?

In international trade, an export is an item produced in one country that is sold in another or a service given in one country for a person or resident of another. The seller of such products or service providers is known as an exporter, while the overseas customer is known as an importer. Financial, accounting, and other professional services, tourism, education, and intellectual property rights are all examples of international commerce.

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