Which of the Following Is True About Import Quotas and Tariffs

question 8

Multiple Choice

Which of the following is true about import quotas and tariffs?

• A) They promote global business across different continents.
• B) They can be a huge roadblock for a multinational firm.
• C) They help companies in nations with political uncertainties to go overseas.
• D) They do not promote self-sufficiency.

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Definitions:

Effective Annual Yield

The interest rate on an investment, expressed on an annual basis, taking into account the effect of compounding.

Semi-annually

Refers to an event occurring twice a year, or every six months.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, to the bondholder.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate; it is a static value and not indicative of market value.