Extraterritorial jurisdiction most often refers to laws that are applied to activities, businesses, and persons located outside the United States. These activities, businesses, and persons may or may not involved Americans, but they are subject to U.S. laws reaching beyond U.S. territorial boundaries.

Externalities, also called spillover effects, are COSTS (negative externalities) or benefits (positive externalities) associated with a market but not included in the price of a good or service. An external cost occurs when the PRODUCTION or CONSUMPTION of a good inflicts a cost on someone other than the producer or consumer.

Exporting�the production and sale of goods from one country to another�is both a business decision and part of a country�s economic and political policies. Businesses export PRODUCTs and SERVICES to markets where they expect to earn PROFITs. From a business perspective, exporting is part of a firm�s MARKETING STRATEGY. Countries exchange goods and services based on COMPARATIVE ADVANTAGE.

The Export-Import Bank of the United States (Ex-Im Bank) is a government-held CORPORATION created in 1934 to finance and facilitate U.S. exports. To stimulate exports to the former Soviet Union at the end of World War II, the Ex-Im Bank supported reconstruction of Europe and Asia.

The United States has a detailed system of export controls intended to protect scarce RESOURCES, further U.S. foreign policy, and enhance national security. The controls are contained in the Export Administration Act (2001) as implemented by a host of regulations.

Experience and learning curves are behavioral models demonstrating that individuals and organizations learn and become more efficient through work. Experience and learning curves are a source of COMPARATIVE ADVANTAGE in competitive markets.

Expectancy theory states that motivation depends on an individual�s expectations of his or her ability to perform a job and the relationship between performance and attaining rewards valued by that individual.

Exit strategies are methods used by companies to discontinue PRODUCTs, businesses, or relationships with customers or suppliers. They are generally not considered as part of a company�s BUSINESS PLAN; rather, they are decisions made when a business plan does not work as anticipated.

See BUSINESS TAXES; CONSUMPTION TAX.

Exchange rates are the domestic price of a unit of foreign currency. Exchange rates impact international trade, part of a country�s CIRCULAR FLOW MODEL of economic output and INCOME. When the value of a country�s currency rises relative to another country�s currency, the currency is said to have appreciated.