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Liula [17]
1 year ago
8

Country a specializes in the production of copper and produces it more efficiently than any other country. It buys wheat, which

it produces less efficiently than copper, from country b, even though it produces wheat more efficiently than country b. Which theory of international trade supports country a’s decision to buy wheat from country b?.
Business
1 answer:
tatuchka [14]1 year ago
7 0

The choice of country a to purchase wheat from country b is supported by Ricardo's theory of comparative advantage, which is the theory of international commerce.

<h3>What is the trade theory of Ricardo?</h3>

Three premises underlie the Ricardian theory of international trade: labor productivities are fixed, there is no cross-border movement of the production factors, and labor is the only production factor. Only the first of these presumptions is acknowledged by Ricardo himself.

According to Ricardo's well-known theory of comparative advantage, countries can gain a competitive advantage in international trade by focusing on producing goods with the lowest opportunity costs compared to those of other countries.

<h3>What can we infer about the advantages of free trade from Ricardo's theory of comparative advantage?</h3>

The foundation of international trade is comparative advantage, which also serves as the basis for the positive economic effects of free trade on nations. According to the comparative advantage concept, trade can still be advantageous to both trading partners even when one country has a clear advantage in producing goods.

Learn more about Ricardo's theory of comparative advantage: brainly.com/question/14015888

#SPJ4

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Bianca took out a $2,600 unsubsidized Stafford loan. She will be attending school for four years, and she wishes to have the loa
Gwar [14]

Interest capitalization is defined as the unpaid interest when added to the principal amount of the loan. It increases the overall cost of the loan.

Bianca will have to pay $13.43 monthly to avoid interest capitalization.

Given that:

Principal value of loan = $2600

Maturity Time = 10 years = 120 months  

Interest rate = 6.2% = 0.062

Now, to find the amount of payment by using the formula:

\rm Payment&=\rm \dfrac{Rate\times Principal}{1-(1+rate)^{time}}\\\\\\\rm Payment&=\rm\dfrac{0.062 \times 2600}{1-(1+rate)^{120}}\\\\\rm Payment &= \rm \161.32

Total payment that is to be paid in 1 year:

\rm Monthly\; Payment &=\rm\dfrac{161.32}{12}&= \$13.43

Thus, the payment that Bianca has to pay is  $13.43.

To know more about interest capitalization, refer to the following link:

brainly.com/question/417585

3 0
2 years ago
Is it possible for companies both to maximize financial value and to be socially responsible? Explain.
Amiraneli [1.4K]

Answer:

This question is about Corporate Social Responsibility (CSR), which is basically being socially responsible (with the employees, community, environment, etc.) and at the same time trying to maximize the financial value of a company (which is a duty to shareholders).

It might be easier for some companies, e.g. service providers, while much harder for mining companies (and other extracting companies). But it doesn't meant that all companies should try their best to do it.

Some companies even benefit from being socially responsible and increase their income through higher sales, e.g. Ben and Jerry's actually increased their sales of ice cream by focusing on CSR.

Even small businesses can benefit from CSR since it increases customer awareness and loyalty, and that can lead to higher sales. E.g. the public image of local businesses that help to finance certain community services improves and that eventually leads to higher sales.

Customers tend to favor companies that they consider to be socially responsible, and if they have to decide between purchasing from a socially responsible company or from another that isn't, they will generally purchase form the socially responsible one.

3 0
3 years ago
Simone is the only provider of pumpkins for three cities. Because she has her own large garden, the marginal cost to produce an
Ainat [17]

Answer: hi your question has some missing data attached below is the missing table

answer : $9

Explanation:

If Simone practices price discriminations across cities i.e. charging different prices across city  instead of charging a single price

<u>To determine the additional profit we will apply the formula below</u>

Profit made from charging different prices   -  profit made from charging a single price

= ( ( $11 * 4) + ( $9 * 4 ) + ( $10 * 5) )  - ( $11 * 11 units )  

= $130 - $121

= $9

Note : For a single pricing system Simone will sell only 11 units at a unit price of $11

while for different pricing system Simone will sell 4 units in city A at$11 , 4 units in City B at $9 ,  5 units in city C at $10

7 0
3 years ago
Which ratios help assess the firm’s ability to meet cash needs as they arise?
Tom [10]

Answer:

Option A Current Ratio

Explanation:

The reason is that current ratio gives information from which source of finance the working capital is funded from. If the answer is below 1 then the short term liabilities are used to finance the short term assets. This also tells whether or not the company possesses enough cash and cash equivalents to fund its future cash needs by comparing its result with past data and the industry average. So the right option is option A.

6 0
4 years ago
Kacey purchases custom windows from Custom Windows, Inc., and wants to ensure that the goods are shipped by common carrier and t
malfutka [58]

Answer:

A. Destination Contract

Explanation:

A destination contract is a contract or an agreement between the seller and the buyer of products. The contract is such that the risk of loss is stated explicitly that until the buyer takes delivery of the goods at his agreed destination, then the risk of loss is to be borne by the seller.

The agreement is based on the knowledge that it is the responsibility of the seller to get his goods to the buyer and until that is done, any risk such as loss of goods or destruction of goods are to be paid for by the seller.  

A destination contract should be therefore specified by Custom Windows Inc which indicates that any form of loss or risk that might occur before the goods get to Kacey will be borne by the company.

7 0
4 years ago
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