For each of the following, is it part of demand for yen or supply of yen in the foreign exchange market? a. A Japanese firm sell
s its U.S. government securities to obtain funds to buy real estate in Japan. b. A U.S. import company pays for glassware purchased from a small Japanese producer. c. A U.S. farm cooperative receives payment from a Japanese importer of U.S. oranges. d. A U.S. pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange.
b) because it allows specialization, which increases total output
Explanation:
Specialization is when a nation or individual concentrates its productive efforts on producing a limited variety of goods. It oftentimes has to forgo producing other goods and relies on obtaining those other goods through trade.
