The Volume of World Trade in Merchandise Is Growing Faster

question 86

Multiple Choice

The volume of world trade in merchandise is growing faster than world GDP. This implies that

• A) more firms are dispersing their production processes to global locations.
• B) the economies of the world's nation-states are becoming more independent from each other.
• C) the global economy is headed for a large downward correction.
• D) the world is becoming poorer.

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Definitions:

Labor Hours

The total number of hours worked by employees for the production of goods or the provision of services.

Inventory Holding Cost

The total cost of storing and managing goods that a company has in stock, including warehousing and insurance.

Forward Buying

Forward buying is a purchasing strategy where buyers purchase larger quantities than immediately needed to take advantage of lower prices or to ensure supply against future shortage.

Market Growth

The increase in the demand or sales of a particular product or service within a specific industry or market over time.