What Is a Trade Bloc

question 14

Multiple Choice

What is a trade bloc?

• A) A group of countries that are self-su?cient and do not trade.
• B) A group of countries that has agreed to remove all trade barriers among themselves.
• C) A group of neighboring countries that implement the same level of tariffs while trading with each other.
• D) A group of countries that use the same currency.

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Definitions:

LIFO

An inventory valuation method that assumes the last items placed in inventory are the first ones sold ("Last In, First Out").

Merchandise sold cost

The cost associated with the goods that have been sold to customers, typically accounting for the purchase or production cost of the merchandise.

Perpetual inventory system

A method of accounting that continuously updates the inventory balance, recording each purchase and sale of goods immediately through inventory accounts.

FIFO inventory cost method

An inventory valuation method where the cost of goods sold is based on the cost of the earliest purchased items, standing for "First In, First Out".