When One Country Can Produce a Good More Efficiently Than

question 24

Multiple Choice

When one country can produce a good more efficiently than another country:

• A) that country should produce that good and be the sole "winner" of trade.
• B) that country can specialize in that good and choose only to export goods.
• C) both can specialize in the industry in which they have comparative advantage and experience mutual gains.
• D) that country has no basis for trading with another nation.

Recognize the factors influencing credit terms and their impact on buyer and seller cash flows.

Distinguish between the different costs associated with carrying credit and managing inventories.

Analyze the impact of changing credit terms on the cash cycle of customers.

Grasp the rationale behind choosing specific inventory management techniques based on company strategy and operational efficiency.

---

Definitions:

Senior Executives

High-level managers within an organization, responsible for strategic decision-making and overseeing operational activities.

Penny Stock Reform Act

U.S. legislation aimed at increasing the transparency and regulate the trading practices of low-priced, speculative stocks, often known as "penny stocks."

Cease and Desist

An order issued by a court or a government agency to stop suspicious or illegal activities.

Dodd-Frank Act

U.S. federal law enacted in 2010 aimed at reducing risks in the financial system by increasing transparency and oversight.