Which of the Following Statements Is TRUE of the Export

question 49

Multiple Choice

Which of the following statements is TRUE of the Export Import (Ex-IM) Bank in the United States?

• A) It is an international agency run by the WTO that provides capital to firms from emerging and developing economies.
• B) It is a federal agency for loans and loan guarantees. Governments in the developing world often provide loans to promote inward direct investment projects such as the construction of dams, power plants, and airports.
• C) It is a branch of the EU that provides working capital loans to SMEs that are based in the economic bloc.
• D) It is a privately owned bank that offers high interest loans to international firms with poor credit ratings.

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Definitions:

Dominant Firm Model

A market structure where one firm has a large market share and sets prices, while other smaller firms follow its pricing strategy.

Fringe Firms

Smaller companies in a market that compete alongside larger firms, often by serving niche segments or employing innovative strategies to maintain market presence.

Monopolist

A seller that is the sole provider of a good or service in a market, thus controlling the market entirely.

Cartel Operation

is the coordination among independent firms within the same industry to control prices, limit competition, or manage the production and distribution of goods.