One Way to Gauge the Impact of Trade on a Nation

question 2

Multiple Choice

One way to gauge the impact of trade on a nation is to measure:

• A) wage distortions and job loss.
• B) the ratio of total imports and exports expressed as a percent of a nation's GDP.
• C) shipping costs.
• D) rises in national income due to trade.

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Definitions:

Average Collection Period

The average number of days it takes a company to receive payment after a sale has been made.

Return On Assets Ratio

The Return on Assets (ROA) ratio measures a company's ability to generate profit from its assets, indicating efficiency in using assets to produce earnings.

Profit Margin

A financial performance metric that measures the amount of net income earned with each dollar of sales generated by comparing net income to revenue.