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During a Recent Budget Cutting Session, the Finance Manager at Eastern

question 1

Essay

During a recent budget cutting session, the finance manager at Eastern Shore Bank proposed eliminating the market research budget. You are the marketing director. What general arguments would you use to defend expenditures on market research?


Definitions:

Tariff

A tax levied on imported and, less commonly, exported goods, used to regulate trade by increasing the price of foreign products to encourage or protect domestic industry.

Real Exchange Rate

The rate at which a person can trade goods and services of one country for those of another, adjusted for inflation.

Import Quota

A limit set by a government on the quantity of a specific good that can be imported into the country.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal per period of time.

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