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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.
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