In Economics, International Trade Is Based on the Existence of

question 348

Multiple Choice

In economics, international trade is based on the existence of

• A) absolute advantage between countries.
• B) relative advantage between countries.
• C) comparative advantage between countries.
• D) output advantage between countries.

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Definitions:

Net 30 Credit Policy

A specific credit term where customers are given 30 days to pay the invoice in full, widely used in business transactions to manage cash flow.

Monthly Interest Rate

The interest rate expressed as a monthly percentage, determining the amount of interest charged or earned per month.

Credit Policy

A set of guidelines that a company follows to determine credit limits and terms for customers, aiming to manage risk and promote sales.

Operating Cycle

The operating cycle is the amount of time it takes for a company to purchase inventory, sell it to customers, and collect cash from the sales.