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3 years ago

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

Business

1 answer:

m_a_m_a [10]3 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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Answer:

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Explanation:

According to the scenario, computation of the given data are as follow:-

1. EPS 2018

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2018:- Weighted Average Outstanding Share of Common Stock = (320,000 × 12 ÷ 12) - (24,000 × 10÷12) + (24,000 × 2÷ 12) + (96000 × 1÷12)

= 320,000 - 20,000 + 4,000 + 8,000 =312,000 shares

2018 Net Income = $780,000

Earning Per Share ( EPS ) 2018 = $780,000 ÷ 312,000 = $2.5 Per Share

2. 2019 EPS:-

Common Stock Share at the Beginning of 2019 =320,000 - 24,000 + 24,000 + 96,000 = 416,000 shares

2019:- Weighted Average Outstanding Share of Common Stock = 416,000 × 2 = 832,000

2019 Net Income = $780,000

EPS = $780,000 ÷ 832,000 = $0.9375 per share

3. The 2018 EPS Be Presented in 2019 Comparative Financial Statement = Net Income ÷ (Weighted Average Outstanding Shares Of Common Stock For 2018 × Stock) )

= $780,000 ÷ (312,000 × 2)

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4 years ago

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3 years ago

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3 years ago

In the IS–LM model, a decrease in the interest rate would be the result of a(n): increase in government purchases. increase in t

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Answer:

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Explanation:

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3 years ago

Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Con

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Answer:

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Explanation:

This can be prepared as follows:

Nathan Herrmann

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Purchase of equipment (229,000)

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Cash flows from financing activities: 

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Repayment of notes payable (49,000)

Issuance of common stock 241,000

Net cash from financing activities 161,000

Increase / (Decrease) in cash (41,000)

Beginning cash balance -

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