Which of the Following Is a Common Reason for Doing

question 233

Multiple Choice

Which of the following is a common reason for doing international business?

• A) reducing imports
• B) accessing lower-cost labour
• C) boosting domestic demand
• D) establishing market monopoly
• E) promoting ethnocentrism

Understand the significance of balancing the budget over the business cycle.

Assess the implications of the crowding-out effect on economic activity.

Grasp the concept of inflationary and recessionary gaps and how fiscal policy can adjust them.

Understand the various components and purposes of financial and operating budgets.

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Definitions:

Collateral Contract

A secondary agreement made in addition to a primary contract, which induces a party to enter into the primary contract.

Leading Object Rule

A legal principle in contract law used to determine whether a promise is enforceable under the Statute of Frauds.

Parol Evidence Rule

A legal principle that prohibits the use of oral or extrinsic evidence to contradict, vary, or add to the terms of a written contract.

Collateral Promise

A secondary promise to pay another person's debt only if that person fails to pay.