Export-Led Growth Tends To

question 158

Multiple Choice

Export-led growth tends to:

• A) Exploit domestic comparative advantages
• B) Discourage competition in the global economy
• C) Lead to unemployment among domestic workers
• D) Help firms benefit from diseconomies of large-scale production

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Definitions:

Financial Risk

The possibility of losing money or the uncertainty in achieving the expected returns mainly due to market movements, interest rates, or credit failure.

ROE

Return on Equity is an indicator of a company's financial performance, indicating the amount of profit made from the shareholders' investments.

Financial Leverage

The action of using debt to magnify the expected return on an investment.

Operating Income

Income from a company's main business activities, excluding deductions for interest and taxes, showing the profitability from core operations.