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Contact [7]
3 years ago
9

Suppose that a country experiences growth strongly biased toward its export, cloth, Group of answer choices this will tend to im

prove the country's terms of trade. this will tend to worsen the terms of trade for the country's trading partner. this will tend to worsen the country's terms of trade. this will increase the price of cloth relative to the imported good. this will tend to leave the country's terms of trade unchanged.
Business
1 answer:
tatyana61 [14]3 years ago
5 0

Answer:

this will tend to worsen the country's terms of trade.

Explanation:

We can imagine a country C whose main export is cloth. Currently country C is gaining from its trade because its opportunity cost of producing cloth is very low.

Since the country's economy is growing strongly because its cloth exports re growing, this will appreciate the country's currency. As the country's currency appreciates, is domestic cost of producing cloth will get closer to the world price of cloth.

This will result in an increase in the cost of exports and a decrease in the price of imports, which will end up hurting the country's economy and it will weaken its trade position.

Something similar happens to countries that rely heavily on exporting commodities. The country's economy grows, but the other industries suffer and eventually the cost of producing commodities increases, and the benefits gained from exports decrease. E.g. during several years Argentina's economy grew strongly solely based on exporting agricultural products. Soon inflation started to rise and the costs of producing agricultural products increased, lowering the gains of trade. Since the rest of the economy relied on the benefits generated by exporting soybean oil, corn and other byproducts, when those benefits decreased, the whole economy collapsed. It was like a giant exporting bubble.

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Visual merchandising is three-dimensional and real, which is more effective than flat drawings or photos. True Or False
Dmitry_Shevchenko [17]
I would assume true, visual merchandising is more of displaying products and flat drawing aren’t as interactive.
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2 years ago
Since world war ii, the federal government's share of total government expenditures has been between?
Anton [14]

The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Since the end of the Korean War in the early 1950s, the federal government's purchases of goods and services as a percentage of GDP have been falling.

Automatic increases and decreases in government expenditure and taxation that follow the economic cycle. The majority of government spending in the United States took place at the state and municipal levels up to the Great Depression of the 1930s.

The federal government has accounted for between two-thirds and three-quarters of all government spending since World War II. Federal Expenditures and Purchases as a Percentage of GDP, 1950–2008.

To learn more about  federal government, click here

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5 0
1 year ago
"The company will pay a dividend of $15 per share 10 years from today and will increase the dividend by 5 percent per year there
statuscvo [17]

Answer:

Current Share price= $114.21

Explanation:

The Dividend Valuation Model is a technique adopted to detremine the value of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows that would arise from the asset discounted at the required rate of return (discount rate)

The model is premised on the concept of the time value of money. The idea that $1 today is not the same as $1 tomorrow. The $1 of today is worth more than that of tomorrow; because of the opportunity to earn interest. So to determine the worth of a future cash flow, we compute its worth today- its present value.

The Present Value of a future cash flow is the amount that needs to be invested today at a particular rate of return to equal the same cash flow in the future. Present value means the value in year 0 or now

The process of calculating the present value of a future sum is called discounting. So to calculate the current stock price in this question, we shall discount the future dividends using the required rate of return and then add them together.

So if an asset (e.g a stock) promises some cash flows in the future, those cash flows need to be brought to their present values and then be added to arrive at the value of the asset

In this question, the cash flows are the dividends as given and the rate of return (discount rate) is 15%

So we apply this model as follows:

Step 1 : PV of div from year 1 to 10  =  15× ((1-1.15)^(-10))/0.15)  =  75.282

Step 2:PV (in year 10)of div from year 11 onward=(15×1.05)/(0.15-0.05)=  157.5

Step 3:PV(in year 0) of div from year 11 onward =  157.5 × (1.15)^ (-10) =  38.93

Current Share price= $75.282 + $38.93 = $114.21

<em>Note:</em><em> step 3 is important because the the cash flows from year 11 onward were discounted to arrive at their values in year 10. Since we are interested in the current price i.e year 0 value, it is important that we re-discount again to bring them to their PV in year 0.</em>

8 0
3 years ago
Suppose Charlene Brewster has timesâ (in seconds) of 8.5â, 8.5â, 8.3â, 8.6â, 8.7â, 8.4 and a performance rating of 85â%.
professor190 [17]

Answer:

1. 10s

2. Slower than normal

Explanation:

1. To calculate the normal time, we first take the average of Charlene's observed times:

Average of Charlene's observed time = \frac{(8.5+8.5+8.3+8.6+8.7+8.4)}{6}= 8.5s

Her normal time is therefore: \frac{Average of Charlene's observed time}{performance rating} = \frac{8.5}{0.85} = 10s

2. Since no of Charlene's observed time is higher than normal time of 10s, we can therefore conclude that her work perfomance should be rated as slower than normal.

7 0
3 years ago
g In translating the financial statements of a foreign subsidiary into the parent’s reporting currency under the current rate me
Usimov [2.4K]

Answer:

The translation adjustment is a function of the foreign subsidiary's net assets.

3 0
3 years ago
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