The Mechanisms (According to the Theory of International Trade and Balance

question 39

Multiple Choice

The mechanisms (according to the theory of international trade and balance of payments) for producing self-correction in out-of-balance accounts is accomplished
Through:

• A) internal market adjustments.
• B) external market adjustments.
• C) internal and external market adjustments.
• D) governmental control.
• E) governmental tariff and nontariff barriers.

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Definitions:

Northwest-Corner Rule

A method used in transportation problems of linear programming to find a basic feasible solution by starting at the northwest corner of a cost matrix and allocating supplies to demands while moving south and east through the matrix.

Ignores Costs

A term referring to the practice or scenario where financial expenditures or implications are not taken into consideration.

Supply and Demand Conditions

The economic model that determines the price of goods in a market, based on the availability of the goods (supply) and the desire for them (demand).

Initial Solution

The first proposed resolution or approach to solving a problem, often used as a starting point for further refinement in optimization problems.