Because It Virtually Controls the World's Deposits of Gem-Quality Diamonds,DeBeers

question 76

Multiple Choice

Because it virtually controls the world's deposits of gem-quality diamonds,DeBeers Consolidated Mines,Ltd.has a(n)

• A) absolute advantage.
• B) comparative advantage.
• C) advantage based on efficient production.
• D) trade deficit.
• E) balance of payment.

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Definitions:

Underwriting Contract

An agreement between an underwriter and an issuer of securities, in which the underwriter agrees to buy and subsequently resell the issue of securities.

IPO

Initial Public Offering, the process through which a private company offers shares to the public for the first time to raise capital.

Allocation Percentage

The portion of an investment portfolio or fund dedicated to a specific asset class, sector, or individual security, usually expressed as a percentage.

IPO Offering

Initial Public Offering, which is when a company first sells shares to the public to raise capital.