An Example of "Value-Added" as an Important Concept for International

question 47

Multiple Choice

An example of "value-added" as an important concept for international trade was the case of imports of iPhones from China. The value-added by China was equal to:

• A) the total value of imported raw and semi-finished materials into China plus the value of the export to the United States.
• B) the total value of the export to the United States minus the total value of imported raw and semi-finished materials into China.
• C) the total value of the export plus shipping costs.
• D) the difference between the total values of exports to the United States minus the total value of imports from the United States.

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Definitions:

Rollback Technique

A decision analysis procedure used to solve decision trees backwards from the end nodes to the beginning, to find the sequence of decisions that maximizes the expected utility.

Expected Opportunity Loss

The anticipated value of the best foregone opportunity when a particular decision is made.

Gross Profits

Total revenue of a company minus the cost of goods sold, not including other operating expenses.

Payoff Table

A table that lists the possible outcomes of different decisions, often used in decision analysis to compare the implications of various strategies.