If Nepal Is a Net Importer of Computers, Free Trade

question 1

Multiple Choice

If Nepal is a net importer of computers, free trade will hurt the

• A)domestic producers of computers.
• B)rich citizens of Nepal.
• C)poor citizens of Nepal.
• D)domestic consumers of computers.

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Definitions:

Economic Order Quantity

is a formula used to determine the optimal order size that minimizes the sum of ordering, holding, and stockout costs.

Inventory Carrying Costs

The total cost associated with holding inventory, including storage, handling, depreciation, and opportunity costs.

Capital Costs

Expenses incurred to create or acquire fixed assets, such as buildings or machinery, that are used in producing goods or services.

Inventory Service Costs

Expenses associated with storing, handling, and managing inventory, including warehousing and insurance costs.