Unilateral Actions by Individual Nations in Trade Matters

question 44

Multiple Choice

Unilateral actions by individual nations in trade matters:

• A)is authorized by most international trade agreements.
• B)is preferred in resolving trade disputes since the actions can be taken quickly.
• C)often mean that international trade organizations have failed to resolve trade conflicts.
• D)often result in a cycle of retaliation against each other which interferes with international trade.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of operational, investment, and financing activities.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.