Walker James Has Just Been Offered an Opportunity to Re-Export

question 8

Multiple Choice

Walker James has just been offered an opportunity to re-export some materials that originated in Sicily.He wants to be honest about the opportunity and determine if there might be any potential problems with the Bureau of Export Administration before going forwards with the deal.Which of the following might be serious "red flags" that might alert Mr.James to potential difficulties?

• A)the exporter is located in France
• B)the exporter is having difficulty with a labor union in Sicily
• C)the shipping route is abnormal for the product and its eventual destination.
• D)the exporter has an outstanding export history.
• E)the exporter recently made staff reductions.

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Definitions:

Offense Strategy

A proactive approach in business or sports wherein actions are initiated to gain a competitive advantage or to score against an opponent.

Big Ten

Refers to a group of ten large universities in the Midwestern United States that are members of the Big Ten Conference, known for their athletic and academic achievements.

Long-Run Equilibrium

A state in which all factors of production and outputs are fully adjusted to the economic conditions, allowing for the optimal distribution of resources and the equilibration of supply and demand in all markets.

Time-Discounted Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting the preference for money now over money later.