Explain the Two Methods That Are Commonly Considered Under the Market

question 17

Essay

Explain the two methods that are commonly considered under the market approach of valuation of the company.

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Definitions:

Imports

Foreign goods and services purchased by domestic customers.

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use as opposed to international or business consumers.

Foreign-made

This term describes products that are produced outside of one's home country.

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in from foreign markets.