Which of the Following Explains Why Trade Has Increased Worldwide

question 70

Multiple Choice

Which of the following explains why trade has increased worldwide, particularly since the early 1970s?

• A) the reduction in shipping and production costs
• B) an increase in trade barriers
• C) falling global incomes
• D) All of these answers are correct.
• E) None of these answers are correct.

---

Definitions:

Cash Cycle

The period between the outlay of cash for goods and services and the cash recovery from sales.

Credit Sales

Sales made by a business where the payment is deferred to a later date, often involving credit terms.

COGS

Stands for Cost of Goods Sold and refers to the direct costs attributable to the production of the goods sold by a company.

Payables Turnover Rate

A liquidity metric that measures how quickly a company pays off its suppliers by dividing total purchases by average accounts payable.