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One of the key ingredients used in the “green tea” flavor of…

Posted byAnonymous November 5, 2025November 6, 2025

Questions

One оf the key ingredients used in the "green teа" flаvоr оf Mr. Green Teа's ice cream are green tea leaves sourced from China. Due to recent economic policies between the United States and China = new tariffs have been placed on imports from China. These tariffs have resulted in the price of Chinese green tea leaves increasing by 25% over the past several months.  The economic policy between the United States and China is a non-diversifiable, "Strategic - External" risk = that affects any firm operating in, trading with, or sourcing materials from China.  However, from solely the perspective of Mr. Green Tea, this increase in the cost of one of its key raw materials (green tea leaves) falls under which quadrant of risk? 

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Tags: Accounting, Basic, qmb,

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