Which of the Following Trade Policies Will Prevent a Foreign

question 4

Multiple Choice

Which of the following trade policies will prevent a foreign supplier to sell even one unit of the good in the domestic market?

• A) import quota
• B) voluntary export restraint
• C) import tariffs
• D) import ban

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Definitions:

Net Accounts Receivable

The total amount of money owed to a company for goods or services that have been delivered but not yet paid for, minus any provisions for bad debts.

Allowance for Uncollectible Accounts

An estimated reserve for debts that may not be collected due to customer default.

Default Rate

A measure reflecting the percentage of borrowers who fail to make payments on their debts as scheduled.

Bad Debt Accruals

Bad debt accruals are amounts set aside by a company to cover accounts receivable that are not expected to be collected because customers are unable to pay.