To Discourage Dumping Activities and to Maintain a Trade Surplus

question 39

Multiple Choice

To discourage dumping activities and to maintain a trade surplus, the government of Alburnark has imposed high taxes on the import of foreign products in the country. In the given scenario, the government of Alburnark has used _____ to restrict imports.

• A) subsidies
• B) tariffs
• C) block grants
• D) quotas

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair market value of its net tangible assets.

Impairment Test

An accounting procedure used to determine if an asset's carrying value exceeds its recoverable amount, indicating if the asset is impaired and the loss that needs to be recognized.

Junk Bond Market

A segment of the financial market that deals with high-risk, high-yield bonds issued by corporations with lower credit ratings.

International Mergers

The combination of companies from different countries into a single entity.