Net Working Capital Will Decrease When a Firm Buys Raw

question 16

True/False

Net working capital will decrease when a firm buys raw materials on credit.

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Definitions:

Merchandise Exporting

The act of sending goods produced in one country to be sold in another country.

GATT

The General Agreement on Tariffs and Trade, an international trade treaty designed to boost economic recovery after World War II by reducing or eliminating trade barriers such as tariffs and quotas.

International Trade

The exchange of goods and services between countries.

Trade Balance

The difference between the monetary value of a nation's exports and imports over a certain timeframe.