Trade Creation Refers to The

question 54

Multiple Choice

Trade creation refers to the:

• A)movement of workers to job markets to gain access to better jobs and wages.
• B)dilution of the political and economic rights of a country.
• C)increased number of opportunities for countries to trade with one another by removing barriers to trade and investment.
• D)tendency of the member countries to trade more with each other than with nonmember nations due to the removal of trade barriers.
• E)movement of production to cheaper labor markets in member countries.

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Definitions:

Coupon Bond

A bond that pays the holder a fixed interest rate (the coupon) periodically until maturity, at which point the principal and final interest payment are made.

Par Value

Par value is the face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.

Convertibles

Securities, typically bonds or preferred shares, that can be converted into a predetermined number of common shares at the option of the holder.