Because Export Subsidies Tend to Result in Domestic Exporters Charging

question 164

Multiple Choice

Because export subsidies tend to result in domestic exporters charging lower prices on their goods sold overseas,the home country's:

• A) Export revenues will decrease
• B) Export revenues will rise
• C) Terms of trade will worsen
• D) Terms of trade will improve

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Definitions:

360-Day Year

An artificial accounting period used in finance that simplifies the calculation of interest by assuming each month has 30 days, resulting in a calendar year of 360 days.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment without compounding, based on a 365-day year.

360-Day Year

A simplified accounting method where the year is considered to have 360 days for the calculation of interest and other financial metrics.

Two Years

A period of time equal to 24 months or 730 days, typically used as a measure for planning or agreements.