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11 months ago

what is the connection, if any, between comparative advantage (ca) and foreign direct investment (fdi)?

1 answer:

6 0

CA has nothing to do with FDI. Countries often engage in FDI in industries where the country they invest in has a comparative disadvantage.

When a nation's businesses make investments abroad, it promotes comparative advantage CA in the same sector at home.

What is comparative advantage -

The ability to create goods and services at a lower opportunity cost, not necessarily at a higher volume or quality, is referred to as having a comparative advantage.

What is FDI-

An entity based in another country makes an investment in the form of controlling ownership in a company in another country. This investment is known as a foreign direct investment (FDI).

Learn more about CA and FDI here:

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2000 is deposited into a newly opened fund on January 1, 1999. Another deposit is made into the fund on July, 1 1999. On January

choli [55]

Answer:

$2,080 is the correct answer to the given question .

Explanation:

As mention in the question the deposited amount of $2000 was in the year the July, 1, 1999 up to the on the January 1, 2000 it means it takes 1/2 year or 6 months.

Time-weighted rate of the return in the year 1999 is the 8.0%

however it has been spent for the six months, it means the 4% in the 6 month

So the cost of the fund before the investment can be determined by

= $2000*1.04$

= $2080

Therefore the balance of the fund on the year July 1, 1999= $2080

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2 years ago

The following information was taken from the records of Marigold Inc. for the year 2020: Income tax applicable to income from co

ivolga24 [154]

Answer:

Net income is $312,610.

Explanation:

This can then be prepared as follows:

Marigold Inc.

Single-Step Income Statement

For the Year 2020

Particulars $ $

Revenue

Sales Revenue 1,634,000

Rent revenue 34,400

Gain on sale Of equipment 81,700

Total revenue 1,750,100

Expenses

Cost of goods sold (731,000)

Selling expenses (258,000)

Administrative expenses (206,400)

Loss on write-down of inventory (51,600)

Total expenses  (1,247,000) 

Operating income before tax 503,100

Tax on income from continuing

operations (160,820)

Income from operation after tax 342,280

Other income (loss ) (net of tax)

Unrealized holding gain on

available-for-sale securities (net of tax) 12,900

Income from continuing operations

after tax 355,180

Discontinued operations

Loss on discontinued operations

before tax (64,500)

Tax on loss on discontinued operations 21,930

Loss on discontinued operations after tax (42,570)

Net income  312,610 

Earning per share

(Net income / Number of Shares outstanding) 3.13

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2 years ago

Jeffery and Cassie, who are married with modified AGI of $90,000, are sending their son to his first year of college. Their tota

Nezavi [6.7K]

Answer: B. $2,500

Explanation:

The American opportunity tax credit (AOTC) is a tax credit benefit for parents and Guardians to paying tuition on Qualified students.

A maximum of $2,500 in credit can be acquired per eligible student and to qualify for this maximum, a married couple filing together must have a Modified Adjusted Gross Income (MAGI) of less than $160,000.

With a modified AGI of $90,000, Jeffery and Cassie are below the threshold and qualify for the full figure.

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3 years ago

"Mr. Tudor," said Judy, "Tom Pritchett suggested I contact you about our new computerized Civil War reenactment game." In this e

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Answer:

Referral

Explanation:

Referral is the term which is described as the act or way of telling someone or a person regarding the positive features or attribute of the business or the person, who is being referred by the person.

For example, referral is telling someone or person that the certain business or the person having a good product or the service, and then that person visit the place.

Under this scenario, Tom referred Tudor to contact them regarding the new game. So, it is an example which the Judy uses referral method or way with Tudor.

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3 years ago

Frieda Inc. is considering a capital expansion project. The initial investment of undertaking this project is $105,500. This exp

Nana76 [90]

Answer:

WACC = 0.18 or 18%

Option b is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component

D, P and E represents debt, preferred stock and common equity respectively

r represents the cost of each component
rD * (1-tax rate) represents the after tax cost of debt

WACC = 0.2 * 0.16 + 0.8 * 0.185

WACC = 0.18 or 18%

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3 years ago