Identify the INCORRECT Statement About Trade Barriers

question 11

Multiple Choice

Identify the INCORRECT statement about trade barriers.

• A) They raise the costs of exporting products to a country.
• B) They may put a firm at a competitive advantage to indigenous competitors.
• C) They may limit a firm's ability to serve a country from locations outside of that country.
• D) To conform to local content regulations, a firm may have to locate more production activities in a given market than it would otherwise.

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Definitions:

Accredited Investor Exemption

A regulatory exemption allowing certain qualified investors to participate in investments not available to the general public.

Takeover Bid

An attempt by a competitor to obtain a controlling interest in a corporation.

Board of Directors

A group of elected or appointed members who jointly oversee the activities and governance of an organization or company.

Legal Obligation

A duty enforced by law, requiring an individual or entity to adhere to a prescribed conduct.