About Two-Thirds of the Reduction in Tariffs in the Past

question 7

Multiple Choice

About two-thirds of the reduction in tariffs in the past 20 years comes from:

• A) reforms by national governments changing their own policies or making agreements with each other.
• B) the work of the WTO, World Trade Organization.
• C) specific funding directed at encouraging trade through subsidies by the World Bank.
• D) None of these statements is true.

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Definitions:

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage, relying solely on its internal resources.

Equity Financing

Equity financing involves raising capital through the sale of shares in a company, thereby giving investors ownership interests in the company.

Financial Policies

Guidelines and rules that govern a company's financial decision-making process and its pursuit of financial objectives.