The Shifting of Trade Away from the Low-Cost Producer Toward

question 236

Multiple Choice

The shifting of trade away from the low-cost producer toward a higher-cost producer because of a reduction in trade barriers with the country of the higher-cost producer is called

• A)the Uruguay Round.
• B)multilateral trade.
• C)trade creation.
• D)trade diversion.
• E)multilateral negotiations.

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Definitions:

Sales Tax

A government-imposed charge on goods and services purchased, collected at the point of sale.

Financial Statements

Official records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Retained Earnings

The portion of a company's profits that is kept or retained rather than being paid out as dividends to shareholders.

Accounts Receivable

Receivables from customers for products or services provided by a company, which are yet to be paid.