If, in the Long Run, International Trade Improves the Standard

question 136

Multiple Choice

If, in the long run, international trade improves the standard of living in participating countries, why might some countries want to place trade barriers, such as tariffs, on imported products?

• A) Imported products compete with domestic products and thus put pressure on local business.
• B) Imported products are usually not as good quality as domestically made products.
• C) Generating government revenue is often more economically valuable than free trade.
• D) This is necessary to keep a country's currency strong.
• E) International trade tends to lead to political tension.

Understand the key differences and functionalities between the BCG Matrix and the GE/McKinsey Grid.

Grasp the importance of market share and its implications for competitive advantages in various industries.

Identify the steps involved in utilizing the GE/McKinsey Grid for strategic analysis.

Recognize the characteristics that define a well-managed portfolio according to the BCG Matrix.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses from its total revenue, representing the profit or loss in a financial period.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Account Balances

The amount of money in an account at any given time, which can reflect credits and debits from transactions.

Reacquired Shares

Stocks that were issued and subsequently bought back by the issuing company, reducing the number of shares outstanding on the open market.