The present value of a cash flow will always be <u>less</u> than the future dollar amount of the cash flow.
<h3>What is the present value?</h3>
The present value is the value of future cash flows discounted by the discount rate to today's value.
Discounting converts a future value to an equivalent value received today. Discounting measures the relative value of a series of future cash flows to a present value.
For example, if $500 is to be received in ten years, with a discount rate of 5%, its present value will be $307 ($500 x 0.614).
Thus, the present value of a cash flow will always be <u>less</u> than the future dollar amount of the cash flow.
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When the local currency falls in value, imports become more expensive, causing locals to purchase fewer imported goods. Exports, on the other hand, are less expensive to international buyers, so their demand rises. Fewer imports and more exports will reduce the trade deficit and may even result in a surplus.
<h3>What is
trade deficit?</h3>
The difference in the monetary value of a country's exports and imports over a given time period is known as the balance of trade, commercial balance, or net exports. A distinction is sometimes made between a trade balance for goods and one for services.
The net-export effect works as follows: A higher price level raises the relative cost of domestic exports to other countries while lowering the relative cost of foreign imports from other countries. As a result, exports fall while imports rise, resulting in a drop in net exports.
The net export variable is critical in calculating a country's GDP. A trade surplus boosts the country's GDP.
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In the post industrial economy,
A. the economic sector that is dominant when the country deindustrializes is the Tertiary industry:
- quaternary and quinary
- service job
Some of the jobs here require the tertiary form of education.
b. Two ways that countries transition to postindustrial economy are:
- They make use of countries that have little government regulations and minimal taxes.
- They use countries where trade unions are non existent.
c. A way that the roles of women get to change is through the reduction in the pay gap that exists between genders. Pay can also be raised for females.
d. Brownfields can be redeveloped in the following ways in the post industrial cities:
- Recreational means: sports and entertainments.
- Agriculture: Creation of urban farms and gardens.
<h3>
What is a post industrial economy?</h3>
This is an economy that is said to have advanced from the manufacturing era into an era of production of services.
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