Businesses whose payroll costs are met by dollars generated from outside the community (eg, manufacturing plants, tourist attractions, airports, colleges) that draw purchasing power into the area are called:

• A. Nonbasic businesses.
• B. Basic businesses (export).
• C. Local-service businesses.
• D. Export-oriented enterprises.

Answer: (B)

In regional economics, basic (export) industries bring new money into a community from outside. When payroll is paid with dollars that originate from outside the area—think manufacturing that sells to outside markets, tourist attractions that draw visitors, airports, colleges—the community gains purchasing power as those outside dollars circulate locally. That external demand is what makes these firms “export” or basic to the local economy, since they bring income into the area from beyond its borders. Local-service or nonbasic businesses, by contrast, primarily serve local residents and rely on dollars circulating within the community, so they don’t introduce new outside money.