One Drawback of Global Trade Is That It Increases the Risk

question 103

True/False

One drawback of global trade is that it increases the risk to firms who must do business in many different countries.

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Definitions:

Sustainable Rate Of Growth

The sustainable rate of growth is the maximum rate at which a company can grow its revenues, earnings, and dividends without increasing its financial leverage or equity capital.

Sales Proportional

A method or metric that relates a company's sales to another factor, measured in a ratio or percentage form to assess efficiency or performance.

Debt And Equity

Refers to the two primary ways of financing a company's operations and growth, through borrowing (debt) or selling ownership interests (equity).

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings and dividends without needing to increase equity or borrowings.