Answer:
5 tons of salt for 1 ton of pepper
10 tons of salt for 1 ton of pepper
Explanation:
Alphaland's opportunity cost of producing one ton of pepper = 80 ÷ 5
= 16 tons of salt
Betaton's opportunity cost of producing one ton of pepper = 3 ÷ 1
= 3 tons of salt
Alphaland's opportunity cost of producing one ton of salt = 5 ÷ 80
= 0.0625 tons of pepper
Betaton's opportunity cost of producing one ton of salt = 1 ÷ 3
= 0.3333 tons of pepper
Therefore, Betaton has a comparative advantage in producing pepper because it has the lower opportunity cost of producing pepper as compared to Alphaland. On the other hand, Alphaland has a comparative advantage in producing salt because it has the lower opportunity cost of producing salt as compared to Betaton.
Hence, Betaton is specialized in the production of pepper and Alphaland is specialized in the production of salt.
Trade is beneficial for both the nations when Alphaland buys pepper at a price lower than the 16 tons of salt and Betaton sells pepper at a price greater than 3 tons of salt.
Trade ratios:
5 tons of salt for 1 ton of pepper
10 tons of salt for 1 ton of pepper
The levy imposed on the import and export of products is referred to as custom taxes.
This is a tactic for limiting international trade as well as a defense or support for domestic customs duties. A tariff is a fee a government charges on goods and services imported from another nation in an effort to sway it. If the service is imported, the person or company who utilizes it is responsible for paying service tax. The importer of these services is therefore eligible to claim the tax credit. Contrary to imports, there is no tax on the exports of goods and services, which makes exports the tax-free alternative to imports.
There are two types of tariffs: fixed (a fixed amount per unit of imported products or a certain percentage of the price) and variable (the amount varies according to the price). People are less likely to purchase imported goods as a result of taxes because they become more expensive.
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Answer:
expense
explanation :
when we're about loan we are talking about a business or a person who is taking a loan. in this case the person or the firm pay interest on the loan.
