An Example of a Trading Bloc Is Which of the Following

question 15

Multiple Choice

An example of a trading bloc is which of the following?

• A)Central American Free Trade Agreement countries
• B)Free trade zones
• C)ISO-9000 companies
• D)American Production and Inventory Control Society
• E)Wal-Mart and its' suppliers

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Financial Asset

Assets that derive value from a contractual claim, such as stocks, bonds, bank deposits, and other investments.

Future Cash Flows

Future cash flows refer to the estimated amount of money that is expected to be received or paid out by a company in future periods.

Sinking Fund

Facilitates the orderly retirement of a bond issue. This can be achieved in one of two ways: the company can call in for redemption (at par value) a certain percentage of bonds each year or the company may buy the required amount of bonds on the open market.