How Do Export Trading Companies Earn Profits

question 56

Multiple Choice

How do export trading companies earn profits?

• A)They charge a revenue tariff on the goods.
• B)They ensure that no other export trading company deals in the same goods.
• C)They buy competitively priced local goods and sell them at a higher price abroad.
• D)They earn incentives from the government to increase exports.

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Definitions:

Annual Interest

The amount of interest paid or earned over a one-year period, typically expressed as a percentage of the principal sum.

Loan Amount

The total sum of money borrowed from a lender that is expected to be repaid with interest.

Interest Rate

This is a fee, calculated as a percentage, that lenders charge borrowers for the use of their money or that borrowers earn on deposits.

Interest Payments

Payments made to lenders as compensation for the use of borrowed money, typically calculated as a percentage of the principal amount.