-Refer to Table 3-2

question 26

Multiple Choice

-Refer to Table 3-2. What is the opportunity cost of 1 kilogram of potatoes for the farmer?

• A) 1 hours of labour
• B) 4 hours of labour
• C) 1/4 kilogram of meat
• D) 4 kilograms of meat

Understand the strategies national governments use to influence their currency strength and exports.

Describe the function and types of tariffs and their impact on trade.

Explain the concept of soft and hard currencies and their roles in international finance.

Analyze the effects of exchange rates and currency strength on export strategies.

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Definitions:

Direct Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, based directly on the willingness to pay.

Arbitrage

The practice of buying and selling equivalent goods in different markets to take advantage of price differences for profit.

Low-value Group

A classification for items or entities considered to have lesser worth or importance, typically due to lower quality or usefulness.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on various criteria.