Answer:
Ricardo’s Theory of Comparative Advantage
Explanation:
Comparative advantage is the term used to define the ability of an individual, firm or country to produce a particular good or service at a lower opportunity cost than that if it’s competitors or trade partners. Opportunity cost is the benefit lost from the second best alternative.
When a country can produce a product more efficiently (i.e maximum output using minimum resources) than that of its trade partners, it is known as that it has absolute advantage in that product. India tends to have absolute advantage in both business processes outsourcing as well as producing agricultural commodities as it is mentioned that it can produce both of these more efficiently than the United States.
However, although it has absolute advantage in both, it is still less efficient in producing agricultural commodities when compared to business process outsourcing. In other words, if it attempts to produce agricultural commodities in-house, the benefit lost from the second best alternative: business process outsourcing is high. The opportunity cost is higher when it produces agricultural commodities than it is when it does business process outsourcing. Hence, due to the law of comparative advantage, it chooses to specialize in business process outsourcing and imports agricultural commodities.
Answer:
Supplier dependence
Explanation:
When an entity finds itself in a situation where it has to rely on a particular supplier or provider of service for its business operations, either as a result of not being able to get an alternative supplier or the importance of the suppliers product to the entity, such is called supplier dependence.
It is very risky for an entity to depend on a particular source for input. This reverse order of an entity depending on the supplier for business strategy instead of the supplier depending on the entity is not a good business practice.
It’s easy for our own strategy to be determined by what our suppliers are doing. If we become too dependent, we risk having our strategy set by our suppliers rather than having them support our strategy. I’ve been thinking a lot here recently about how much suppliers can direct you
Answer:
I be confident for your company
Answer:
A. Telephone expense is debited $82; accounts payable is credited $82.
Explanation:
Mr. Peabody has incurred a debt of $82 on telephone expenses. His expenses have increased by $82, and his debts(liabilities) have also increased by $82.
An increase in expenses is recorded by debiting the relevant expense account. Mr. Peabody will debit the telephone expense account by $82.
Liabilities have increased by $82. An increase in liabilities is recorded by crediting the liabilities account. Mr. Peabody will complete this transaction by crediting the liabilities account by $82.
Answer:
Great Lakes should recognize on the income statement for the year ending December Year 1 $4,000
Explanation:
The income statement only recognize the amount of money that was generated during the period of the income statement.
If the company invoiced by month, it only recognize the total amount for the last four months of the year.
