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Mila [183]
2 years ago
11

Specialization in international trade- based on Ricardo’s Theory:

Business
1 answer:
m_a_m_a [10]2 years ago
4 0

Answer:

A) Japan specializes in Auto while US specializes in Planes

B) The range of terms of trade:

P = A . if P =A = 2A then the specialization will be beneficial to both countries.

C) The best terms of trade will be

P = ( A + 2A )/ 2 = 3A  / 2 = 1.5A

D) The net benefit for each country (after specialization)

Japan : 20A-(7.5A+10A) = 2.5A

U.S :  40P- (13.33P + 20P) = 6.67P

E) some of The limitations of production and export  :

i) There are more than two countries in the world hence the assumption are not real

ii) In the table the quality of goods produced is not tabulated/considered as well

iii) The technological expertise of both countries where not considered as well

Explanation:

A) From the information provided below ; Japan specializes in Auto while US specializes in Planes , this is because Japan is more efficient in the production of Autos when compared with Plane production.

B) The range of terms of trade:

lets assume that trade in Japan before specialization was : 12 A = 6 P, hence P = 2A  also assume that of US  to be ; P = A . if P =A = 2A then the specialization will be beneficial to both countries.

C) The best terms of trade will be

P = ( A + 2A )/ 2 = 3A  / 2 = 1.5A

D) The net benefit for each country (after specialization)

Japan : 20A-(7.5A+10A) = 2.5A

U.S :  40P- (13.33P + 20P) = 6.67P

E) some of The limitations of production and export  :

i) There are more than two countries in the world hence the assumption are not real

ii) In the table the quality of goods produced is not tabulated/considered as well

iii) The technological expertise of both countries where not considered as well

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3 years ago
The executive leadership team of a large corporation is analyzing a report. The report's contents have information that can be u
gregori [183]

Answer:

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3 years ago
ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.
Vesnalui [34]

Answer:

Johnstone should value the equipment at <u>$40,326.29</u>.

Explanation:

To determine this, the present value of the five annual installments of $8,000 is first calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the five annual installments =?

P = Annual payment = $8,000

r = interest rate = 10%, or 0.10

n = number of years = 5

Substitute the values into equation (1) to have:

PV = $8,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)

PV = $8,000 * 3.79078676940845

PV = $30,326.29

Therefore, the present value of the five annual installments of $8,000 is approximately $30,326.29.

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Value the equipment = Payment on the purchase day + present value of the five annual installments = $10,000 + $30,326.29 = $40,326.29

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2 years ago
The Homestead Strike of the Iron and Steel workers in Homestead, PA is representative of the struggle in the late 1800's between
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Answer:

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In 1889 the union won, but Carnegie wanted revenge, so in 1892, he demanded harsher conditions after the initial contract was over and when the union said no, a lockout started. It was bloody and messy, with 16 dead. Carnegie's private army of 300 guards faced 10,000 strikers and things turned ugly soon. The Pinkertons (Carnegie's troops) were "defeated" but too many lives were lost.

Since Carnegie's little was defeated, he asked a bigger fish to help him and the governor sent 8,000 soldiers to arrest any union striker that opposed Carnegie. Finally, Carnegie's millions and corrupt politicians won, and the workers were forced to accept lower wages and more working hours. Those who rejected the forced deal were sent to prison.

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KonstantinChe [14]

Answer:

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