An Example of the Use of Trade as a Political

question 78

Multiple Choice

An example of the use of trade as a political weapon is

• A) sanctions on Russia for the occupation of Crimea in spring 2014.
• B) subsidies to automakers by the U.S. government to rescue them from collapse.
• C) exorbitant tax rates for repatriated profits in the U.S.
• D) Apple's exports to Cuba.

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Definitions:

Finance Lease

A lease agreement in which the lessee assumes substantially all the risks and rewards of ownership, similar to finance purchase.

Lease

A contractual agreement whereby the owner (lessor) of an asset allows another party (lessee) to use the asset in exchange for payment over a specified period.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be paid back at a future date.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.