To Be Able to Enforce the Rules of a Free­trade

question 126

Multiple Choice

To be able to enforce the rules of a free­trade area, goods from
Outside the region imported into the lowest­tariff nation cannot
Be shipped ________ into another nation in the area.

• A)with no transportation costs
• B)without a labor certificate
• C)with no customs inspection
• D)duty free

---

Definitions:

Present Value

The present worth of a future amount of money or series of cash inflows, calculated using a given rate of return.

Annual Net Cash Flows

Annual net cash flows represent the amount of cash a company generates or loses within a year from its operating, investing, and financing activities.

Required Return

The minimum amount of profit or gain an investor expects to achieve from an investment to make it worthwhile.

Net Present Value Method

A financial modeling technique that evaluates the profitability of an investment by discounting future cash flows to their present value and subtracting the initial investment.