Asked by Brianna Ellis on May 26, 2024
Verified
How do export trading companies earn profits?
A) They charge a revenue tariff on the goods.
B) They ensure that no other export trading company deals in the same goods.
C) They buy competitively priced local goods and sell them at a higher price abroad.
D) They earn incentives from the government to increase exports.
Export Trading Companies
Firms that specialize in international trade, providing services such as market research, distribution, logistics, and financial support to exporters.
Revenue Tariff
A revenue tariff is a tax on imports primarily designed to generate income for the government without necessarily protecting domestic industries.
Competitively Priced
Pricing goods or services in a manner that is attractive to customers when compared to competitors, usually by being lower or offering more value.
- Comprehend the processes involved in trade such as exports, imports, and countertrade activities.
- Understand the role and function of export trading and management companies in facilitating international trade.
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Learning Objectives
- Comprehend the processes involved in trade such as exports, imports, and countertrade activities.
- Understand the role and function of export trading and management companies in facilitating international trade.
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