The Most Frequently Encountered Impediment to International Trade for Small

question 62

Multiple Choice

The most frequently encountered impediment to international trade for small and medium-sized manufacturers is ________.

• A)foreign sales are not sufficiently profitable
• B)transportation and shipping costs
• C)language and cultural barriers
• D)foreign regulations

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Definitions:

Debt-Equity Ratio

A financial comparison indicating the relationship of debt to equity in financing a company’s assets.

WACC

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, used to evaluate investment opportunities.

Flotation Costs

Flotation costs are the total costs incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.