Answer:
D) it presumes there will be economic gains even if output does not become internationally competitive
Explanation:
The argument for import protection in developing countries to bring about industrialization differs from the infant-industry argument in that it presumes there will be economic gains even if the output does not become internationally competitive. International competitiveness is a step of the relative cost of services/goods from a nation. Countries that can provide a similar quality of goods at a cheaper cost are stated to be extra competitive.
Answer:
Year 1, Year 2 purchasing power = 8 , 9 (respectively). As price level fall, value of money<u> Increases </u>
Explanation:
Year one purchasing power = Money ($) / Price per basket = 72 / 9 = 8
Year two purchasing power = Money ($) / Price per basket = 72 / 8 = 9
This implies that, as price level falls (from 9 to 8 here) ,the value of money ie purchasing power increases (from 8 to 9)
Answer:
low
Explanation:
cost of borrowing money is less
Answer:
The amounted contributed to U.S.GDP is $2 million
Explanation:
First and foremost, the question reiterated that $1 m is due to U.S-owned equipment company and U.S.managers working in Mexico,this is where the key to unlocking the question lies.
On the basis that the money is shared equally between the equipment company and the U.S managers working in Mexico,each group gets $500,000 which is an input for the car manufacturer. However, $2.5m worth of cars are sold to U.S-an output ,deducting the $500000 due to the managers from the output value gives $2m
When a company buys something on credit it increases account payable, and when a company sells on credit it will increase their account receivable.
