Who Is Likely to Be in Favor of a Country

question 94

Multiple Choice

Who is likely to be in favor of a country that would be a net-importer if it moved from autarky to free trade?

• A) Domestic producers
• B) Domestic consumers
• C) Foreign consumers
• D) Foreign governments.

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Definitions:

Underwriter

A person or organization that evaluates and assumes the risk of another entity, often involved in issuing new securities as part of public offerings.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership such as options.

Floatation Costs

The expenses incurred by a company when issuing new securities, including underwriting fees, legal fees, and registration fees.

Firm Commitment

A type of underwriting where an underwriter agrees to buy all the unsold shares in an offering and sell them to the public.