Which of the Following Is a Major Benefit of International

question 29

Multiple Choice

Which of the following is a major benefit of international lending?

• A)It allows improvements in the current account balances of the borrowing nations.
• B)It requires reducing restrictive trade practices in the lending and the borrowing countries.
• C)It allows countries to reduce taxes in the domestic market.
• D)It allows lenders and investors to diversify their investments more broadly.

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Definitions:

Direct Materials Budget

A financial plan that estimates the raw materials needed for production and the associated costs.

Production Budget

An estimate of the number of units that must be produced during a period to meet expected sales demand and to satisfy ending inventory requirements.

Raw Materials

These are the basic, unprocessed inputs used in manufacturing to produce finished goods.

Selling and Administrative Expense Budget

A detailed plan that estimates the expenses related to selling products and managing the business.