Which of the Following Statements About the Dynamics of World

question 283

Multiple Choice

Which of the following statements about the dynamics of world trade is most accurate?

• A)Manufactured products and commodities account for only 75 percent of world trade.
• B)Services such as telecommunications,transportation,and banking account for three-fourths of world trade.
• C)The United States will replace China as the biggest country in terms of world trade by 2015.
• D)All nations participate equally in world trade.
• E)Dollar value of world trade has more than doubled in the past decade.

---

Definitions:

Net Present Value (NPV)

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate, to determine the project’s profitability.

Internal Rate of Return (IRR)

A method of calculating an investment's rate of return that makes the net present value of all cash flows equal to zero.

Mutually Exclusive Investments

Mutually exclusive investments are investment options where the choice of one alternative precludes the selection of another, requiring a careful comparison to choose the best option.

Capital Rationing

Occurs when investors or management place a constraint on the size of the firm’s capital budget during a particular period.