Answer:
a. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs.
b. Who has the comparative advantage in the production of shirts? What about for computers?
- China has the comparative advantage in the production of shirts, while the US has the comparative advantage in the production of computers.
c. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graphs. Which country would benefit from trade?
- China would export 50 million shirts in exchange for 5 million computers (or more if they can). Trade would benefit the US since it will only need to trade 5 million computers in exchange for 50 million shirts, and it will still have 15 million computers that it can consume or trade with come other country.
d. Explain at what price of computers (in terms of shirts) the two countries might trade.
- the minimum and maximum prices would be 5 to 10 shirts per computer. If the price of shirts per computer is 10 or near 10, then the US wins more. If the price of shirts per computer is 5 or near 5, then China wins more.
Explanation:
opportunity cost of producing 1 shirt in the US = 20/100 = 0.2 computers
opportunity cost of producing 1 computer in the US = 100/20 = 5 shirts
opportunity cost of producing 1 shirt in China = 10/100 = 0.1 computers
opportunity cost of producing 1 computer in China = 100/10 = 10 shirts
without trade:
- total production of shirts in the US = 50 million
- total production of computer in the US = 10 million
- total production of shirts in China = 50 million
- total production of computer in China = 5 million
with trade:
- total production of computers in the US = 20 million
- total production of shirts in China = 100 million
Answer:
The answer is: Refers to a standard of business conduct and can improve business decisions
Explanation:
Business ethics are the moral principles and values that guide how a company behaves. It´s a way for distinguishing if something is right or wrong.
Since any business is part of a community (or several communities in case of big corporations) its decisions are judged by the community. Customers don´t tolerate flagrant unethical business behavior, no matter what excuse.
Customers like businesses that show ethical values. That is why some corporations try to present themselves as ecological or caring about their community.
Answer
Hi,
They are; income tax, self-employment tax, employment tax and Excise tax
Explanation
All businesses are expected to file income tax return on yearly basis. Some pay taxes as they earn the income. The self-employment tax is imposed to contribute to social security and health care cover for a person who works for him or herself. Employment taxes are a mandatory to employers who are required to pay it to cover social security and healthcare taxes and federal unemployment tax for the workers. Some businesses are levied excise tax depending on the goods sold or manufactured, the type of business operation and the type of equipment and products used.
Best wishes!
Answer:
C) in swap transactions where the trader is attempting to minimize currency exposure, the actual spot and outright forward rates are often of no consequence.
Explanation:
Swap transactions occur with negotiations based on the profitability of two goods, in relation to the profitability related to the value of a currency of a given location. As the currency value of these two goods can vary significantly, the traders involved in this process always seek to minimize currency exposure, as well as real cash rates. This gives space for bank brokers to use shortened laces notation, where future price predictions are considered.
