Licensing Means Engaging in the International Division of Labour So

question 67

True/False

Licensing means engaging in the international division of labour so that work activities can be done in countries with the cheapest sources of labor and supplies.

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Definitions:

Effective Rate

The interest rate on a loan or investment, adjusted for the compounding period, providing a true reflection of financial costs or returns.

Terms of Sale

The conditions under which a seller is willing to sell a product or service, including price, payment method, and delivery time.

Prompt Payment Discount

A reduction in the amount due on a bill offered by a seller to encourage early payment by the buyer.

Operating Cycle

The total time it takes for a company to purchase inventory, sell the products, and collect the cash from the sales.