An Effect of International Trade Is

question 110

Multiple Choice

An effect of international trade is

• A) the increase in the average price of goods as the cost of transportation has to be included.
• B) the transmission of ideas around the world.
• C) that only countries that have absolute advantage in producing a good can participate.
• D) that the United States has a trade surplus.

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Definitions:

Cash Disbursements

The outflow of cash for expenses, investment purchases and other payments.

Manufacturing Overhead Budget

A financial plan that estimates the expected indirect costs of producing goods or services, excluding direct materials and direct labor.

Direct Labor-Hour

A measure of the amount of time spent by workers who are directly involved in the production process of creating goods or services.

Merchandising Firm

A type of business that purchases finished products and sells them to consumers without altering the form of the goods.