A Voluntary Export Agreement

question 77

Multiple Choice

A voluntary export agreement

• A) typically applies only to the world's most important exporting nation(s).
• B) typically applies only to the world's least important exporting nation (s).
• C) is always more restrictive on trade than a tariff or import quota.
• D) allows producers with superior products to participate in market.

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Definitions:

Asset Class

A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.

Sensitivity Analysis

Indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.

Stand-alone Risk

The risk associated with a specific project or investment, considered independently from the broader company or portfolio risks.

NPV

Net Present Value; a calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.