Share This Article:

Economic Definition of foreign sector. Defined.

Offline Version: PDF

Term foreign sector Definition: The basic macroeconomic sector that includes everyone and everything outside the political boundaries of the domestic economy. This includes households, businesses, and governments in other countries. This is one of four macroeconomic sectors. The other three are household sector, business sector, and government sector. In terms of the circular flow model of the economy, the foreign sector is responsible for net export expenditures on gross domestic product.

 

« foreign investment | foreign trade »

Permalink: http://glossary.econguru.com/economic-term/foreign+sector

Alphabetical Reference to Over 2,000 Economic Terms