One Obstacle to the Adoption of the Export Promotion Model

question 20

Multiple Choice

One obstacle to the adoption of the export promotion model by countries in other regions is that

• A)the Uruguay Round of the GATT forbids many types of export promotion policies.
• B)research and development for new exports is too expensive.
• C)only noncommercial R&D is permitted under the rules of the GATT.
• D)industrial monopolies in the high-income countries will block further exports by developing countries.

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Definitions:

Common Stock Split

A corporate action to divide its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in a company.

Net Income

The total earnings or profit of a company after deducting all expenses, taxes, and losses from the total revenue.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.