Answer: Yes, it's beneficial
Explanation:
Comparative advantage is the ability of a nation to produce goods at a lower opportunity cost when compared to its trading partners. A comparative advantage allows a firm sell its product at a lower price and make more sales.
In comparative advantage, the nation might not necessarily be the best at producing a particular good but it has a low opportunity cost in the production of the good for other nations to import. Comparative advantage leads to specialisation and enhances economic growth.
For example, if France can produce cheap grapes and Italy can produce cheap tomatoes, France should stop producing tomatoes and Italy should stop producing grapes. France should focus on the production of grapes while Italy should focus on tomato production. This will lead to more income for both economies since there is productive efficiency.
<span>Exporting has the least amount of risk. This is because the company is simply selling its wares to other businesses and consumers, without having to worry about licensing the product, getting permissions from other governments, or having to jump through loopholes to get the product in the hands of the intended audience.</span>
Answer:
<u>Monopolist competition</u>.
Explanation:
The market structure of monopolistic competition occurs when there are several companies offering similar products, which even though substitute products cannot be considered perfect substitutes. Monopolistic competition is characterized when in the market there are many sellers competing for a higher market position of some product or sector. This type of monopolistic competition is characterized by free entry to other companies, which makes it increasingly competitive in the pursuit of customer preference.
Answer: .(a) Arises from peripheral or incidental transactions - corresponds to the definition of gains and losses.
(b) Obligation to transfer resources arising from a past transaction. - Corresponds to Liabilities.
(c) Increases ownership interest. - Investment by owner, Comprehensive Income.
(d) Declares and pays cash dividends to owners. - It is the Distributions to Owners.
(e) Increases in net assets in a period from nonowner sources. - Corresponds to Comprehensive Income.
(f) Items characterized by service potential or future economic benefit. - Is the definition of Assets.
(g) Equals increase in assets less liabilities during the year, after adding distributions to owners and subtracting investments by owners. - Comprehensive Income.
(h) Arises from income statement activities that constitute the entitys ongoing major or central operations. - Corresponds to the definition of Revenues and Expenses.
(i) Residual interest in the assets of the enterprise after deducting its liabilities. - Equity.
Answer:
a. 30 units of corn and 30 units of wheat.
Explanation:
In a two-product, two-country world, international trade leads to specialization. Each country will produce the product in which it has comparative advantage. In this case, Freedonia will produce only corn and Sylvania will produce only wheat. With all constant, the country will consume the same amount of that product, but the surplus will exchange it for the other product. Freedonia will use all its workers to produce corn, in a year they will produce 6*10= 60 units of corn. Sylvania will use the 10 workers to produce wheat, in a year they will produce 6*10=60 units of wheat.
But, Freedonia will consume the same amount of corn (30 units). Then, Freedonia have 30 available units to trade with Sylvania. And the same for Sylvania, they will consume the same amount of wheat (30 units) and so Sylvania will have 30 available units of wheat to trade with Freedonia.
If the price, for both goods, is the same, Ricardo´s theory predicts that total consumption in both countries will increase, then consumer welfare will increase. Freedonia will consume the same 30 units of corn, but the other 30 will be exchanged by 30 units of wheat. Consumers are better and happier. Freedonia will consume 20 units more of wheat than before without sacrifying units of corn.
