Which sector receives imports and provides exports?

• A. Household sector
• B. Government sector
• C. Firms sector
• D. Overseas sector

Answer: (D)

In open-economy accounting, the rest-of-the-world (overseas) sector is the external counterpart that trades with the domestic economy. It is the conduit for cross-border flows: domestic units buy imports from abroad, and domestic producers sell exports to foreign buyers. So this sector is the one that both receives imports (from abroad) and is the destination for exports (going to abroad). That’s why the overseas sector is the correct choice.