The Viability of an Exporting Strategy Is Often Constrained by Transportation

question 22

Multiple Choice

The viability of an exporting strategy is often constrained by transportation costs, particularly of products that can be produced in almost any location and have a:

• A)high local content requirement.
• B)low total landed cost.
• C)low value-to-weight ratio.
• D)low licensing tariff.
• E)high marginal cost.

Recognize the economic importance of international trade to various countries.

Describe the basis for international trade and its effects on economies.

Analyze the impact of trade balances on national economies.

Discuss the role and criticisms of major international trade organizations.

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Definitions:

Merchandise Inventory

Merchandise on hand (not sold) at the end of an accounting period.

Notes Receivable

Written promises for amounts to be received in the future, typically with interest, classified as assets on a balance sheet.

Calculating Interest

The process of determining the amount of interest to be added to the principal sum of a loan or deposit.

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including both the principal and any final interest payments.