Two Major Events That Occurred in 2000 Had a Profound

question 57

Multiple Choice

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States granting normal trade relations (NTR) to China on a permanent basis (PNTR) . What is the other one?

• A) inclusion of state owned companies in NASDAQ
• B) admission to the World Trade Organization
• C) signing of the new ASEAN pact
• D) the handover of Hong Kong by the British to China
• E) inclusion of Hong Kong as a special administrative region (SAR) of China

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Definitions:

Spontaneous Financing

Financing that arises naturally from the operations of a company, such as trade credit that increases as sales grow, without requiring explicit negotiation or arrangements.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.

Carrying Costs

Expenses associated with holding or storing inventories, including warehousing, insurance, and spoilage costs.

Cash Inflows

The total amount of money being transferred into a business, often from operations, investments, or financing.