Two Common Approaches to Using Ratio Analysis Are

question 43

Multiple Choice

Two common approaches to using ratio analysis are:

• A) Internal and external.
• B) Horizontal and vertical.
• C) Formal and informal.
• D) Industry and general.

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Definitions:

Capital Flight

The large-scale exodus of financial assets and capital from a nation due to events such as political or economic instability, reducing the nation's investment capacity.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign purchases of the domestic country's assets over a certain period.

Net Exports

The value of a country's total exports minus its total imports, representing the trade balance within a specific period.

Tariffs

Taxes or duties imposed on imported goods to make them more expensive compared to domestic goods, often used to protect local industries.