______________ Occurs When High-Cost Domestic Producers Are Replaced by Low-Cost

question 10

Multiple Choice

______________ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.

• A) Trade alteration
• B) Trade qualification
• C) Trade diversion
• D) Trade creation
• E) Trade diversification

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Definitions:

Sales Tax Payable

An account responsible for tracking the sales tax gathered from buyers, due to be paid to the authorities.

Accounts Receivable

Funds that customers owe to a business for goods or services already provided but not yet compensated for.

Sales Tax Payable

A liability account that accumulates the collected sales tax from customers to be remitted to the respective tax authorities.

Asset Account

An asset account is a category in the financial statements that reports the value of a company's assets, such as cash, inventory, property, and equipment.