All categories

3 years ago

If an economist argues that everyone gains from trade, what reasoning is most likely underlying her argument?

Business

1 answer:

mylen [45]3 years ago

4 0

Answer:

If an economist argues that everyone gains from trade, the following reasoning is most likely underlying her argument:

Production according to the principle of comparative advantage lowers overall costs and therefore allows both countries to have a higher standard of living.

Explanation:

The comparative advantage refer to the situation in which an individual, company or a country offers its services and products at a lower rate as compared to its competitor. This leads to trade-off as you have to comprise for the gain of something.
This comparative advantage also increase the dependencies of nations or companies on each other.
For example, England and Portugal has benefited from this comparative advantage concept as England get the wine at lower cost from Portugal and Portugal also get earning by selling this wine to England.

You might be interested in

You work for a company that manufactures prescription eyeglasses and want to create a piece of content for your buyer persona. y

Svet_ta [14]

Answer: A checklist on how to determine if it's time to get a new pair of eyeglasses

A set of predefined checks can let the customer know if there could be changes in his lens and if its time for another visit to the eye specialist. This would make the customer more happy and lean towards towards your businesses for future needs and make him a loyal customer

6 0

3 years ago

Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 pe

ahrayia [7]

Answer and Explanation:

The computation is given below:

For Bank A,

Effective annual rate is

= (1 + 0.10 ÷ 12)^12 - 1

= 10.47%

For Bank B,

Effective annual rate is

= (1 + 0.11 ÷ 4)^4 - 1

= 11.46%

And,

For Bank C,

Effective annual rate = 12%

Therefore, Bank A is best to borrow at lowest effective annual rate

8 0

3 years ago

Which parameter of the marketing mix includes decisions on distribution channels?

MA_775_DIABLO [31]

Answer:

The answer is Place

Explanation:

In the marketing mix, the process of moving products from the producer to the intended user is called place. In other words, it is how your product is bought and where it is bought. This movement could be through a combination of intermediaries such as distributors, wholesalers and retailers.

6 0

3 years ago

Epley Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4

rusak2 [61]

Answer:

The cost of equity using the DCF method: 4.39%.

The cost of equity using the SML method: 15.01%.

Explanation:

a. The cost of equity using the DCF method:

We have: Current stock price = Next year dividend payment / ( Cost of equity - Growth rate) <=> Cost of equity = Next year dividend payment/Current stock price + Growth rate = 0.3 x 1.04/80 + 4% = 4.39%.

b. The cost of equity using the SML method:

Cost of equity = Risk free rate + beta x ( Market return - risk free rate); in which Risk free rate is rate on T-bill.

=> Cost of equity = 6.3% + 1.3 x ( 13% -6.3%) = 15.01%.

6 0

3 years ago

Drifting off the pavement will cause ______. a pitch motion back tire traction loss an uneven shift in balance front tire tracti

kaheart [24]

Drifting off the pavement will cause front tire traction loss. When you understeer on a slippery surface around a bend or curve, you lose front tire traction.

<h3 /><h3>What is tire traction?</h3>

Traction is described as "the capacity of a wheel or tire to maintain contact with the ground without slipping." This is especially critical while driving on slick terrain, such as snow.

<h3>What factors influence tire traction?</h3>

Traction is created when multiple forces push against one another at the same time, forming a strong grip between them.

In the instance of a car, we have the weight of the vehicle, the immovability of the road, the power of the engine, and the amount of flexibility a tire possesses.

Learn more about Tire traction:

brainly.com/question/28102749

#SPJ1

4 0

1 year ago