Country X Wants to Stimulate Exports

question 69

Multiple Choice

Country X wants to stimulate exports. Which of the following would most likely help Country X achieve this goal?

• A) subsidies
• B) currency controls
• C) investment controls
• D) quotas

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, varying according to the amount of income or profit made.

Unrealized Gain

Represents the increase in value of an investment or asset that has not yet been sold for cash.

Commercial Substance

A concept in accounting that a transaction has commercial substance if it significantly changes the economic circumstances of the entities involved.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.