Which of the following best describes exporting in the context of international trade?

• A. Restricting the flow of goods and services between countries through tariffs.
• B. Purchasing goods and services from foreign countries for domestic consumption.
• C. Investing in foreign companies to gain access to their markets.
• D. Selling goods and services produced in one country to buyers in another country.

Answer: (D)

Verified step by step guidance

1. Understand the concept of exporting in international trade: Exporting refers to the sale of goods and services produced in one country to buyers located in another country.
2. Review the options given and identify key terms: 'Restricting the flow' relates to trade barriers like tariffs, 'Purchasing goods' refers to importing, and 'Investing in foreign companies' relates to foreign direct investment, not exporting.
3. Recognize that exporting involves the movement of domestically produced goods or services out of the country to foreign buyers, which is distinct from importing or investment activities.
4. Match the definition of exporting with the option that states 'Selling goods and services produced in one country to buyers in another country,' as this accurately captures the essence of exporting.
5. Conclude that the correct description of exporting is the sale of domestically produced goods and services to foreign buyers, differentiating it clearly from importing, tariffs, or foreign investment.