A Possible Drawback to the Essential Industry Argument for Import

question 70

Multiple Choice

A possible drawback to the essential industry argument for import protectionism is ________.

• A)that such protection hurts the protecting country's balance of payments
• B)in times of military emergency, almost any product could be considered essential
• C)other countries find supplies elsewhere
• D)unemployment increases in the protecting country

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Definitions:

Budgeted Sales

The projected amount of sales, in units or dollars, that a company expects to achieve during a specific period.

Credit Sales

Sales in which the customer is allowed to pay for the goods or services at a later date, rather than at the time of purchase.

Raw Materials Purchases

The total cost of all components bought for use in the production process of goods.

Cash Disbursements

Outgoing payments made by a business, often documented in a cash disbursement journal, including expenses, creditor payments, and other financial outflows.