1.What is importing and exporting and why do countries trade?

Importing is buying products from another country and exporting is the opposite, which is selling products to another country. Think of it as importing equals receiving in and exporting equals giving out. It might be confusing to think why would countries trade, instead of producing everything they need themselves. Although countries trade because certain things one country might produce can be easier than another to produce. So, in that case it is more beneficial to trade goods and each country has a little of both produced. At the end of the day both countries end up benefiting each other and contribute to global efficiency.

2.-What makes a company a multinational corporation? Name the top five largest companies in the Bay Area.

A multinational corporation is a company that operates in multiple countries and conducts business activities beyond its home country's borders. To be a multinational corporation, the company should have the following characteristics: it has subsidiaries, branches, or affiliates in more than one country; it targets diverse markets and customer bases across different countries or regions; it has complex global supply chains, sourcing materials, components, and talent from various countries; it has cross-culture management.

The top five largest multinational companies in the Bay Area are Apple, Alphabet/Google, Meta, Wells fargo, and Visa.

-How would a low value of the dollar affect U.S. exports?

A low value of the dollar means a dollar can be exchanged for a smaller amount of foreign currency. It can both have positive and negative effects on U.S. exports. On the one hand, when the U.S. dollar is weaker relative to other currencies, U.S. exports become more competitively priced in international markets. Foreign countries would like to buy more goods from the U.S. since it's more affordable now. That leads to an increase in U.S. exports. On the other hand, while a weaker dollar benefits exports, it can increase the cost of importing goods and services into the United States. This can lead to higher prices for imported consumer goods and raw materials, potentially impacting domestic businesses and consumers, which in return affect exports.