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:

Merchandise Purchases

The cost of goods bought for resale during a specific accounting period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Desired Amount

The specific quantity of money or resources that an individual or organization aims to achieve or accumulate.

Management Support

Refers to the assistance and resources provided by a company's management to support the operations, strategies, and objectives of the business.