The Majority of Inter-Firm Trade Involves

question 58

Multiple Choice

The majority of inter-firm trade involves:

• A) spot purchasing of direct goods.
• B) contract purchasing of indirect goods.
• C) contract purchasing of direct goods.
• D) spot purchasing of indirect goods.

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Definitions:

Expected-Rate-Of-Return

The anticipated return on an investment, expressed as a percentage of the total amount invested.

R&D Expenditure

The amount of money spent on research and development activities to create new products, processes or improve existing ones.

Interest-Rate Cost

The cost associated with borrowing money, expressed as a percentage of the total amount borrowed, which accrues over the period of the loan.

Venture Capital

Financing that investors provide to startup companies and small businesses believed to have long-term growth potential.