Increasing Trade Deficits in the 1980s and Concerns About U

question 94

Multiple Choice

Increasing trade deficits in the 1980s and concerns about U.S.competitiveness led to ________ firms that cooperated in ________ .

• A)increasing antitrust enforcement against; foreign markets
• B)relaxation of antitrust enforcement against; joint ventures
• C)decreased antitrust activity involving; increasing domestic price discrimination
• D)increased discouragement of; foreign ventures

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Definitions:

Cost Of Capital

The earnings rate a business must achieve on its investments to keep its market value stable and entice capital.

Debt And Equity

The two primary ways a company finances its operations, through borrowing money (debt) and selling shares (equity).

Use Of Funds

The detailed explanation of how a business or individual plans to allocate capital or revenue toward specific expenditures.

Cost Of Capital

The rate of return that a company must earn on its projects to maintain its market value and attract funds, encompassing the cost of both debt and equity financing.