Which of the Following Is NOT a Reason That International

question 5

Multiple Choice

Which of the following is NOT a reason that international trade theory is useful for managers to understand?

• A) Countries use trade theories to help them decide how to improve their competitive positions, such as improving the quantity and quality of production factors.
• B) Countries' trade policies affect whether imports are allowed to compete against domestic production, thus affecting where companies need to produce to serve given markets.
• C) Countries use laissez-faire policies to intervene in the free movement of international trade, thus affecting where companies can produce most efficiently.
• D) Countries wrestle with the questions and set policies on what, with whom, and how much they should import and export, thus affecting companies' abilities to produce given products efficiently and sell them into given markets.

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Definitions:

Production Contracts

Legal agreements detailing the specifications, quantities, and payments for goods or services.

Spot Markets

Markets where financial instruments or commodities are bought and sold for immediate delivery, contrasting with futures markets where delivery is set for a future date.

Competitive Bidding

A procurement process where multiple providers submit bids for a contract, offering their best prices or proposals, with the aim of securing business by outcompeting others.

Fair Price

A price considered reasonable or justifiable for a product or service, often based on factors like cost, market demand, and ethical considerations.