It Costs a Computer Manufacturer $1,000 to Produce a Personal

question 151

Multiple Choice

It costs a computer manufacturer $1,000 to produce a personal computer. This manufacturer sells these computers abroad for $600. This is an example of

• A) a negative tariff.
• B) export subsidy.
• C) dumping.
• D) a trade-related economy of scale.

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Definitions:

Revenue Measured

The process of determining the monetary amounts at which the revenues of a company are recognized in the financial statements.

Tax Concessions

Financial incentives or reductions in tax rates provided by governments to encourage certain business activities or investments.

Public Company

A business entity that has issued securities through an initial public offering and is traded on at least one stock exchange or in the over-the-counter market.

Non-Exchange Transaction

Transactions where a company or organization receives value without directly giving equivalent value in return, common in governmental and non-profit accounting.