What is defined as the sale of goods or services to a foreign buyer resulting in money flowing into the UK?

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Prepare for the GCSE Business Exam with targeted flashcards and multiple choice questions. Get hints and explanations for each question. Excel in your exam!

The correct answer is defined as exporting, which refers specifically to the sale of goods or services produced in one country to a foreign buyer. When an export occurs, money flows into the country from the sale, benefiting the domestic economy. This process allows businesses to expand their markets beyond national borders, increasing potential sales and revenue opportunities. In international trade, exporting is essential for fostering economic growth, improving trade balances, and promoting domestic production.

The other choices do not align with this definition. Importing, for instance, pertains to goods brought into a country from abroad, which results in money flowing out of the country rather than into it. Trading generally refers to the exchange of goods and services, but does not specifically emphasize the international aspect or the inflow of money. Likewise, investing involves allocating resources for future profit, but it is not directly related to the sale of goods or services to foreign buyers. Understanding these terms is vital in grasping the fundamental concepts of international trade and its impact on the economy.

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