Which of the Following Is a Difference Between Export Management

question 16

Multiple Choice

Which of the following is a difference between export management companies (EMCs) and export trading companies (ETCs) ?

• A)ETCs deal with both exports and imports, while EMCs deal only with exports.
• B)ETCs are subject to antitrust laws, while EMCs are not.
• C)ETCs typically carry inventory, while EMCs typically do not.
• D)ETCs operate more on the basis of demand, while EMCs operate more on the basis of supply.

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Definitions:

Stock Market

A public market for buying, selling, and trading company shares and securities.

Long-term Real Rate

The interest rate on a long-term loan or investment, adjusted for the effects of inflation, reflecting the real cost of borrowing or the real yield on an investment.

Bonds

Fixed-income securities where an investor loans money to an entity (corporate or sovereign) which borrows the funds for a defined period of time at a variable or fixed interest rate.

Average Rate Of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.