Kevin Is Excited Because He Has Just Signed an Agreement

question 144

Multiple Choice

Kevin is excited because he has just signed an agreement to purchase steel frames from a company at an excellent price and of very high quality.Once the contract begins,Kevin eagerly awaits the first shipment,but it arrives a month behind the agreed-upon schedule,which slows down production at Kevin's plant.Kevin is furious because he realizes too late that this supplier

• A) produces poor quality.
• B) has bad credit terms.
• C) is unreliable.
• D) is not as inexpensive as he thought.
• E) is unscheduled.

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Definitions:

Terms of Trade

The ratio between a country's export prices and its import prices.

Imported Product

Assets or services sourced from outside a country and brought in for the objective of sales.

Domestic Product

The total value of all goods and services produced within a country's borders in a specified time period.

Exchange Rate

The price of one currency in terms of another, determining how much foreign currency can be exchanged for the domestic currency.