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3 years ago

How does a weak currency give a country an unfair advantage in trade?.

Business

1 answer:

harina [27]3 years ago

6 0

Answer:

From the countries point of view with the weaker currency, their goods are relatively cheaper to other countries, and other countries goods are relatively more expensive to this country (Say Country A) as they have a weaker currency.

From the point of view of Country B, with a stable currency, Country A's goods are relatively cheaper because they have a weaker currency.

Due to this scenarios, Country B will export less to Country A than import because Country B will be buying more of Country A's product as it is relatively cheaper. It will export less to Country A because Country B's products are relatively more expensive to Country A due to their weak currency.

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Financial analysts have estimated the returns on shares of the Goldday Corporation and the overall market portfolio under two ec

Marina86 [1]

Answer:

covariance = 0.0070

Explanation:

Given data :

probability of recession = 0.5 , probability of economic boom = 0.5

For Goldday corporation

During Recession

probability = 0.5

return on stocks = -0.04

expected return = 0.5 * - 0.04 = - 2.00%

deviation 1 = - 7% ( -0.04 - average return )

Prob * deviation ^2 = 0.5 * (- 7% )^2 = 0.002450

During Economic boom

probability = 0.5

return on stocks = 0.10

expected return = 0.5 * 0.10 = 5%

deviation 1 = 0.10 - average return = 7%

Prob * deviation^2 = 0.5 * ( 7%)^2 = 0.002450

Hence for Goldday corporation

average return = ∑ expected returns = 3%

variance = ∑ Prob * deviation^2 = 0.0049

std = √0.0049 = 7%

Note : perform the same calculation for the Market

For Market

average return = ∑ expected returns = 4%

variance = ∑ Prob * deviation^2 = 0.01000

std = √ variance = 10%

Determine the covariance between Goldday and the MARKET

= ∑ ( deviation 1 * deviation 2 * probability )

= recession + economic boom

= ( - 7% * - 10% * 0.5 ) + ( 7% * 10% * 0.5 )

= 0.0035 + 0.0035 = 0.0070 ---------> answer

8 0

3 years ago

1 suppose you buy a budget-priced pocket pc and discover that the chip inside can't do multiplication, only addition. you progra

goldenfox [79]

/* Works only if a >= 0 and b >= 0 */ int pow(int a, int b) { if (b == 0) return 1; int answer = a; int increment = a; int i, j; for(i = 1; i < b; i++) { for(j = 1; j < a; j++) { answer += increment; } increment = answer; } return answer; } /* driver program to test above function */ int main() { printf("\n %d", pow(5, 3)); getchar(); return 0; }

8 0

4 years ago

Firm A has $1 million in operating income and pays $250,000 in interest. In addition, firm A has $7.50 EPS. Firm B has an operat

Vitek1552 [10]

Answer:

$10.00

Explanation:

Earning per share is the ratio of net Income of the business per outstanding share of the business after deducting the preferred dividend from net earning. It shows how much each stockholder earn against their each share in a specific period.

Earning Per share ( EPS ) of Firm A = $7.50 per share

Number of outstanding share can be calculated as follow

EPS = Net Income / Outstanding Numbers of share

Outstanding Numbers of shares = Net Income / EPS

Outstanding Numbers of shares = ($1,000,000 - $250,000) / $7.5 per share = 100,000 shares

Firm B

As Tax will be ignored, interest expense is also same as the Firm A and numbers of share is also sames.

Operating Income = $2.0 million = $2,000,000

Less: Interest expense $250,000

Net Income $175,000

EPS = $175,000 / 100,000 share = $17.5 per share

Difference = $17.5 - $7.5 = $10 per share

8 0

3 years ago

Read the short scenario and answer the question that follows. Lisa's credit card balance this month is $969.16. Her APR (annu

mario62 [17]

Answer:

76 months

Explanation:

If Lisa only pays the $20 minimum monthly payment, it will take her 76 months to repay her debt (6 years and 4 months). She will also end up paying almost $540 in interest.

If you have a credit card it is never a good idea to pay only the minimum monthly payment since you will end up paying a lot of interest and usually other fees and charges apply.

5 0

3 years ago

Harper Electronics Corp. was forced to pay off the government representative of the foreign country before Harper Electronics wa

Sergio [31]

The factor that affected the company's cost of doing business based on having to pay a government official off is a Political factor.

<h3>What are political factors affecting business?</h3>

These relate to the impact of the government of a nation on a business venture.
Includes taxes, relevant laws, and payments to the government.

Paying off the government of a nation to engage in business therefore falls under the political factor because it involves dealing with the government of the nation.

In conclusion, this is the political factor.

Find out more on factors affecting business at brainly.com/question/17961245.

7 0

3 years ago