Factories in Country A can produce the same number of tablets as factories in Country B, or the factories in Country A could be used to build more laptops than the factories in Country B is an example of comparative advantage in an international market.
<u>Explanation:
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The comparative advantage of manufacturing a good or service is smaller than that of other nations. Opportunity cost compensation measures.
A country with a comparative advantage pays off. The benefits of buying are higher than the drawbacks.
Perhaps the nation isn't the best producer. But for other countries, good or service costs are low.
For Example, Call centers in India. U.S. businesses buy the service because the location of the call center in America is cheaper. Call centers in India are no different than U.S. call centers. Their employees don't always talk very clearly in English. Nonetheless, they offer the service inexpensive enough to make the deal worthwhile.
Answer:
Depreciation Expense for December 31, 2016 = $12000
Explanation:
1st normal Depreciation in order get book value on January 1st, 2016
Depreciation Expense = (Cost - Salvage value ) / Estimated useful life
Depreciation Expense = ($60000-$24000) / 6
Depreciation Expense = $6000
As it straight line method depreciation will remain same So value of Truck will reduce by $12000. Hence, book value of Truck will be ($60000 - $12000) = $48000
Now get new book value by adding current book value of Truck and repairs on truck. ($48000 + $20000) = $68000 and new salvage value is $8000.
New Depreciation expense:
Depreciation Expense = (Cost - Salvage value ) / Estimated useful life
Depreciation Expense = ($68000-$8000) / 5
Depreciation Expense = $12000
Answer:
a. Monica is treated as receiving cash distributions of $50,000 ($10,000 cash plus $40,000 relief of liabilities). The distributions reduce Monica's basis to $10,000
b. The inventory takes a carryover basis to Monica of $6,000, and reduces her basis in MIP to $4,000
c. If this is a proportionate liquidating distribution, Monica recognizes a loss of $4,000, and her basis in the inventory will be $6,000. The inventory cannot be "stepped up" to absorb the $10,000 of basis remaining after the distribution. Because Monica has received only cash and inventory, she may claim the loss.
Answer:
The answer is $150 million
Explanation:
A closed economy is also called autarky. A closed economy is an economy that trades only within its economy. There is no import and there is no export also. The economy (country) is self-sufficient.
The formula for GDP in a closed economy equals C + I + G
where C is the household/individual consumption.
I is the business or firm's investment
G is the government spending.
GDP is $600million
C is $ 250 million
G is $ 200 million
I = ($600 - $ 250 - $200) million
I= $150 million