In General, Which of the Following Do Not Tend to Increase

question 6

Multiple Choice

In general, which of the following do not tend to increase trade between two countries?

• A) linguistic and/or cultural affinity
• B) historical ties
• C) larger economies
• D) mutual membership in preferential trade agreements
• E) the existence of well controlled borders between countries

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Definitions:

Prepaid Expenses

Expenses paid in advance for benefits to be received in the future, recorded as assets on a balance sheet until used.

Expense

An expense is a cost incurred in the process of generating revenue. Expenses reduce a company's income and are accounted for in the income statement.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity, representing the financial position of a company.

Cash Account

A cash account is a business or brokerage account that requires the account holder to pay the full amount for securities purchased.