This is a key idea with international trade. This involves what is known as comparative advantage.
let's say country A can produce a ton of soybeans in 4 hours and a ton of corn in 2 hours. While country B can produce a ton of soybeans in 15 hours and a ton of corn in 5 hours.
Looking at this set up you can see that country A can produce both corn and soybeans faster, so they have an absolute advantage in both!
However what trade is based on is opportunity cost. So if we think about how much corn country A has to give up to produce soybeans, they have to divert a total of 4 hours from corn to soy beans to produce one ton of soy beans. That 4 hours could be used to produce 2 tons of corn (since 2 hours for 1 ton and we're taking away 4 hours!). So opportunity cost of soybeans in country A is 2 corn.
In country B they would need a total of 15 hours to produce one extra ton of soybeans, but those 15 hours could instead be used to produce 3 tons of corn (5 hours per ton and we're stealing 15 total hours). That means country B's opportunity cost is 3 corn.
Since A has a lower opportunity cost in produce soybeans they will specialize and B will specialize in corn.
Answer: Nontariff barriers
Explanation:
Nontariff barriers are trade barriers that are used whereby the import and export of goods and services are restricted. It should be noted that the restriction is not by tariffs but can include include embargoeds, quotas, sanctions, and levies.
The main reason for trade barriers are to generate revenue for the government and also to protect the local industries.
Answer:
Explanation:
The journal entries are shown below:
a. Cash A/c Dr $15,000
To Games revenue A/c $15,000
(Being cash collected)
b. Cash A/c Dr $3,000
Accounts receivable A/c Dr $5,000
To Sales revenue $8,000
(Being cash received for selling of equipment)
c. Cash A/c Dr $4,000
To Account receivable $4,000
(Being cash received for merchandise sold by the company)
d. Cash A/c Dr $2,500
To Unearned revenue A/c $2,500
(Being deposit received for the upcoming fall season)
Answer: (2) Friction unemployment
Explanation:
The friction unemployment is one of the type of unemployment in which the employees or workers are jobless and they are searching for the healthy and good economy.
It is also known as the searching unemployment process as it is differentiated from all the other types of unemployment. The following are the types of friction unemployment are as follows:
- Cyclical unemployment
- Structural unemployment
According to the given question, the friction unemployment is one of the development computerized job process in which the employees search the job on the basis of employee interest.
Therefore Option (2) is correct answer.
Answer:
a. ($35,000)
Explanation:
The computation of the financial advantage or disadvantage of dropping product V860 is shown below:
= Sales - Variable cost - Avoidable fixed manufacturing - Avoidable fixed selling
= $150,000 - $72,000 - $30,000 - $13,000
= $35,000
This $35,000 would be a financial disadvantage and the fixed cost should not be considered as it is not held for decision making purpose
Hence, the correct option is a
