Open-To-Buy Is the Difference Between Planned Purchases and Purchase Commitments

question 7

True/False

Open-to-buy is the difference between planned purchases and purchase commitments already made by a buyer for that month.

---

Definitions:

Specific Tariff

A fixed fee imposed by a government on imported or exported goods, based on physical units like weight or quantity.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

World Price

The price of a good that prevails in the global market for internationally traded goods.

Trade Restrictions

Measures imposed by governments to limit international trade for various reasons, including protecting domestic industries.