Some Observers Opposing Free Trade Argue That When We Buy

question 106

Multiple Choice

Some observers opposing free trade argue that when we buy shoes from Brazil or shirts from Taiwan, U.S. workers lose their jobs. The fact of the matter is that

• A) most jobs lost because of free trade pay less than the poverty level.
• B) the jobs lost are concentrated in restricted geographic areas.
• C) free trade creates jobs in export industries.
• D) no U.S. worker has actually lost a job because of free trade.

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Definitions:

Common Size Analysis

An analytical technique that converts each line of financial statement data to a percentage of a base amount, facilitating the comparison across different companies or periods.

Ratio Analysis

A financial analysis tool used to assess a company's performance and financial health by calculating ratios from the data in financial statements.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory over a given period.

Net Credit Sales

The total value of sales made on credit, minus returns and allowances, reflecting the true sales activity.