It May Be More Costly to Do Business in Relatively

question 47

Multiple Choice

It may be more costly to do business in relatively primitive or undeveloped economies because of

• A) international trade restrictions.
• B) the lack of governmental support.
• C) difficulty obtaining workers.
• D) the lack of infrastructure and supporting businesses.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and manufacturing overhead expenses.

Historical Rate

A reference to the exchange rate used in the past for converting one currency to another at a specific time.

Restated

Refers to financial statements that have been revised from their original figures to correct errors or account for retrospective changes in accounting policy.

U.S. Dollars

The currency of the United States, used as the standard unit of money for transactions within the country and internationally.