Latin Shoes Wants to Shut Down Parallel Imports Between France

question 18

Multiple Choice

Latin Shoes wants to shut down parallel imports between France and Germany.Why might this be difficult to do?

• A)France applies the national exhaustion principle.
• B)Germany applies the national exhaustion principle.
• C)The EU applies the international exhaustion principle.
• D)The EU applies the regional exhaustion principle.

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Definitions:

Gross Investment

The total amount of money spent on capital goods, or assets that will provide productive capacity for the future, without deducting for depreciation.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Capital Stock

The total value of all physical assets owned by a company that are used in producing goods and services.

Interest Rate

The percentage charged or paid for the use of money, typically expressed as an annual rate on loans or earned on deposits.