Which of the Following Is Not a Risk of Exporting

question 31

Multiple Choice

Which of the following is not a risk of exporting?

• A) Tariff barriers
• B) Transportation costs
• C) Location diseconomies
• D) Prime interest rates
• E) Delegation of marketing activities to a local agent

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Definitions:

Interstate Commerce

A test that is applied to determine whether an employer must follow the rules of the Fair Labor Standards Act. If an employer communicates or does business with another business in some other state, it is usually considered to be involved in interstate commerce.

FICA

FICA refers to the Federal Insurance Contributions Act, which is a U.S. law that requires a payroll tax to fund Social Security and Medicare programs.

OASDI

An acronym for Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retired people, the disabled, and survivors of deceased workers.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger people with disabilities.