Which of the Following Is(are) the Effect(s) of an International

question 45

Multiple Choice

Which of the following is(are) the effect(s) of an international
Trade agreement that provides an incentive and reward for
Nations NOT to impose tariffs?
I.an increase in world welfare and standard of living
II.an opportunity for low­income nations to exploit the gains
From trade.
III.an opportunity for large countries to improve their terms of
Trade

• A)I
• B)I and II
• C)I and III
• D)I, II, and III

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Definitions:

PV Of CCA Tax Shield

The present value of the reduction in taxes payable by a firm due to the depreciation expenses claimed on its capital assets.

PV Of After-Tax Lease Payments

The present value of lease payments after accounting for taxes, used to evaluate the financial cost or benefit of leasing.

Original Investment

The initial amount of money put into a project, asset, or venture.

Sales And Leaseback Arrangement

A financial transaction where one sells an asset and leases it back for the long-term; thus, one continues to use the asset but no longer owns it.