C.Identifies the potential of employees
Through free trade, countries specialize in the goods for which they have a comparative advantage and trade for those in which they do not. Specialization allows a country to divide labor among the various production segments, which results in higher productivity and greater economic growth for the involved countries.
What Are the Economic Impacts of Specialization?
Specialization, along with the complementary concept of the division of labor, occurs when the innate inequalities of human productive output are intensified along different skills. An individual becomes economically specialized when he focuses his productive efforts on an increasingly narrow range of tasks. The most obvious economic impact of specialization can be seen in the tendency for individuals to choose different vocations that are more in line with their interests, skills, opportunities, and education.
Division of labor:
The division of labor is the separation of the tasks in any economic system or organisation so that participants may specialize (specialization). Individuals, organizations, and nations are endowed with or acquire specialized capabilities and either form combinations or trade to take advantage of the capabilities of others in addition to their own. Specialized capabilities may include equipment or natural resources as well as skills and training and combinations of such assets acting together are often important. For example, an individual may specialize by acquiring tools and the skills to use them effectively just as an organization may specialize by acquiring specialized equipment and hiring or training skilled operators. The division of labor is the motive for trade and the source of economic interdependence.
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Answer:
The yield to call is 5.07%
Explanation:
The yield to call can be computed using the rate formula in excel,which is given as :=rate(nper,pmt,-pv,fv)
nper is the number of years to call which is 6 years
pmt is the annual interest coupon payable by the bond,which is :6.75%*$1000=$67.5
The pv is the current price at which the bond is offered to investors. i.e $1,135.25
fv is the price at the bond would be called in six years i.e par value+premium
par value is $1000
premium is $67.5
call price is $1067.5
=rate(6,67.5,-1135.25,1067.5)
rate=5.07%
Answer:
Raw materials purchases cost for May 10,160
Explanation:
May production
sales 2,470
ending 2,130
beginning <u> (2,200) </u>(ending of April)
<em>units to be produced 2,400</em>
Raw material budget
production needs 2,400
desired ending inventory
2,600 x 70% = 1,820
beginning inventory
may production x 70%
2,4000 x 70% = (1,680)
total raw materials purchase 2,540
It will puchase raw materials for 2,540 units. Each units require $4 of raw materials.
total cost for raw materials:
2,540 x $4 = 10,160
Answer:
At the rate of return of 18%, the purchase of the new machine is not convenient.
Explanation:
Giving the following information:
Simone Company is considering the purchase of a new machine costing $50,000. It is expected to save $9,000 cash per year for 10 years, has an estimated useful life of 10 years, and no salvage value. Management will not make any investment unless at least an 18% rate of return can be earned.
We need to find the net present value using the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
NPV= -50,000 + 9,000/1.18 + 9,000/1.18^2 + 9,000/1.18^3 + ... + 9,000/1.18^10
NPV= -9,553
At the rate of return of 18%, the purchase of the new machine is not convenient. It will produce a loss in value.
