If a Nation Opens Up to Free Trade and Becomes

question 104

Multiple Choice

If a nation opens up to free trade and becomes an importer of goods,which of the following is then true?

• A) The nation as a whole loses.
• B) Sellers gain.
• C) Buyers gain.
• D) Buyers lose.

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Definitions:

Return on Equity

An indicator of a company's financial performance, indicating the amount of profit generated from the investments made by its shareholders.

Gross Profit Percentage

A financial metric that shows the portion of sales revenue that exceeds the cost of goods sold (COGS), expressed as a percentage of total sales revenue.

Net Profit Margin

A profitability ratio that measures the percentage of net income generated from total revenue, indicating the efficiency of a company in managing its operations and expenses.

Principal

The original amount of a debt or investment on which interest is calculated.