-Refer to Table 12-1

question 187

Multiple Choice

-Refer to Table 12-1. Assume that there are no transportation costs or trade restrictions. With which country can Canadian importers make a profit?

• A) Bolivia
• B) Japan
• C) Norway
• D) Thailand

---

Definitions:

Simple Rate of Return

A method to evaluate the profitability of an investment by dividing the annual incremental net operating income by the initial investment cost.

Operating Expenses

Costs associated with a company’s operational activities, excluding direct labor and materials, that are necessary to run the business.

Sales Revenues

The total amount generated from selling goods or services before any expenses are subtracted.

Cash Operating Costs

The expenses a company incurs during its normal business operations that require cash payments, such as rent, utilities, and payroll.