If American farmers sell part of their corn production to Mexican consumers, their sale represents:

• A. a transfer payment from Mexico to the United States
• B. a domestic transaction within the United States
• C. an export from the United States
• D. an import to the United States

Answer: (C)

Verified step by step guidance

1. Understand the concept of exports and imports: Exports are goods or services produced domestically and sold to foreign countries, while imports are goods or services bought from foreign countries and brought into the domestic market.
2. Identify the direction of the transaction: American farmers produce corn in the United States and sell it to Mexican consumers, which means the product is moving from the U.S. to Mexico.
3. Recognize that since the corn is produced domestically and sold abroad, this transaction is an export from the United States.
4. Eliminate other options: It is not a transfer payment because no unilateral payment is involved; it is not a domestic transaction because the buyer is foreign; and it is not an import because the product is leaving the U.S., not entering it.
5. Conclude that the sale of corn by American farmers to Mexican consumers represents an export from the United States.