Trade Between Two Nations Is Complicated by

question 71

Multiple Choice

Trade between two nations is complicated by

• A)the variability in exchange rates of the respective nation's currencies.
• B)different production techniques in the nations.
• C)the age and experience of the respective nation's diplomats.
• D)the variability in climate between the nations.

---

Definitions:

Sales

How revenue from the sale of merchandise is recorded; the total amount charged customers for merchandise sold, including cash sales and sales on account.

Investment Turnover

A ratio that measures the efficiency of a company in generating sales or revenue from its invested assets.

Profit Margin

The ratio of net profits to revenues for a company, indicating the efficiency at which it can convert revenue into profit.

Return on Investment

A financial ratio that calculates the gain or loss generated on an investment relative to the amount of money invested.