International Trade Can Be Mutually Advantageous Because It

question 95

Multiple Choice

International trade can be mutually advantageous because it

• A) encourages the adoption of sound institutions and policies.
• B) reduces the competitiveness of domestic industries and, thereby, makes it easier for the domestic producers to raise their prices.
• C) permits the trading partners to take advantage of reductions in per-unit costs in industries where economies of scale are important.
• D) does all of the above.
• E) does both a and c.

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Definitions:

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing while maintaining a stable financial structure.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

Dividends Paid

The total amount of dividend payments made by a corporation to its shareholders over a specified period, usually quarterly or annually.

Growth Rate

The rate at which a company's earnings or capital is expected to grow, usually annually, influencing investment decisions.