Several Big Firms Got into Financial Trouble in 2008

question 172

True/False

Several big firms got into financial trouble in 2008. The problems were not isolated to just a few industries. It stretched from financial services companies to the U.S. auto makers. The government proceeded with a number of bailouts.

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Definitions:

Trade Barriers

Measures that governments or public authorities introduce to restrict or impede international trade and competition, such as tariffs, quotas, and regulations.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than competitors, leading to more efficient international trade.

Capital Goods

Long-term assets acquired by businesses to create goods and services; these include machinery, tools, and buildings.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.