Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. Thi
s suggests that__________.
1 answer:
Answer:
other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.
Explanation:
This question is incomplete. Please check the attached image for a complete question.
A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.
The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.
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Answer:
The correct answer is $20,369.65.
Explanation:
According to the scenario, the computation of the given data are as follows:
Payment (pmt) = $2,025
Discount rate ( rate) = 7%
Time period ( Nper) ( 6 -23 years) = 18 years
So, we can calculate the Present value by using financial calculator.
Attachment is attached below.
So, Present Value = $20,369.65
