The chart shows a circular flow model describing the
movement of goods and services.
Households
Imports
Goods and services
Factors of production
Foreign
sector
Exports
Firms
How does globalization cause the foreign sector to
influence the economy?
The foreign sector influences how services move
between firms and households.
The foreign sector influences how imports and
exports move between firms and households.
The foreign sector influences how factors of
production move between firms and households.
The foreign sector influences how goods move
between firms and households.