Which of the Following Statements Is True of the United

question 7

Multiple Choice

Which of the following statements is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG) ?

• A) Parties to international business contracts for the sale of goods may choose not to be governed by the convention.
• B) The convention covers contracts between two parties even if their operations are in countries that have not adopted the convention.
• C) The convention extensively covers personal consumer transactions in addition to business-to-business situations.
• D) The convention also applies to contracts where the buyer and seller have places of business in different states of the same country.

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Definitions:

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market.

Capital Requirements

The minimum amount of capital a bank or financial institution must hold as required by financial regulators.

Economies Of Scale

Financial advantages gained by businesses from their operational size, wherein the cost for each unit of production typically falls as the scale expands.

Industrial Organization Economics

A branch of economics that deals with the structure, behavior, and performance of industries and firms, including competition and regulation.