Explanation: Purchasing power parity (PPP) is a theory that means that in the long run, exchange rates between countries would be the same and similar goods will cost the same amount in both countries. Purchasing Power Parity shows that there should be no opportunities where the differences in price between different countries can lead to profit. The gross domestic product between countries is compared by using the purchasing power parity.

Purchasing power parity is based on the law of one price which means that the price of all identical goods should be the same. Hence, it us unlikely that people buy Big Macs in countries where they're cheaper and sell at countries where there price is higher.

Hope this helps.

7 0

4 years ago

Two types of multitasking are:

Dennis_Churaev [7]

The second option is the correct one.

4 0

2 years ago

Luxere Hotels International, an American company, sells the rights to other hospitality companies globally to open hotels with t

Ivahew [28]

Answer:

a. franchising

Explanation:

A franchise involves a franchisor selling rights to their logo, name, and model to a third party called franchisee. The franchisee performs business for the franchisor and an agreed amount is paid.

Luxere Hotels International is engaging in franchising by selling rights to other hospitality companies globally to open hotels with the Luxere name for a fee and a share of the profit.

5 0

3 years ago

On January 1, 2021, Gundy Enterprises purchases an office building for $316,000, paying $56,000 down and borrowing the remaining

andreyandreev [35.5K]

Total Payments $378,542.00

Actual Payment on loan $260,000.00

Interest Expenses $118,542.00

<u>Explanation</u>

Date General Journal Debit credit

1-Jan-18

Office $316,000

Cash $56,000

Mortgage Payable $260,000

(To record buying office)

2. Amortization Schedule:

Date Cash Paid interest expense Decrease in Carrying

value value

1/1/2018 0 0 0 260000

1/31/2018 3154.52 1733.33 1421.19 258578.81

2/28/2018 3154.52 1723.86 1430.66 257148.15

Date General Journal Debit Credit

1-Jan-18

Mortgage Payable $1,421.19

Interest expenses $1,733.33

Cash $3,154.52

(To record first month payments)

Interest Expenses Reducing the carrying value

First Payment $1,733.33 $1,421.19

4. Total Payments $378,542.00

Actual Payment on loan $260,000.00

Interest Expenses $118,542.00

8 0

4 years ago