Answer:
The Price of Cocaine would rise drastically
Explanation:
If U.S Drugs Enforcement Agency impose higher restrictions in an effort to control illegal import of cocaine into the United States, this would directly impact the market for illegal drugs in the following ways:
- Since more restrictions get imposed, the procurement cost of cocaine alongside the risk associated with it in the form of higher penalties and prosecution, both will rise.
- The supply of cocaine would shrink in the market.
- The above two outcomes would result into the procurers and peddlers demanding much greater price for the same quantity of cocaine so as to compensate for the higher risk assumed and higher procurement costs associated.
Thus, price of cocaine will rise drastically as an outcome of such a move.
Answer: Selling exports abroad at a lower price than the domestic price.
Explanation:
Dumping is a practice in international trade where the country exporting, does so at a price that is lower than the domestic price of the good being exported in the importing country.
This allows the country exporting to gain more market share but can also lead to the collapse of the domestic industry thereby allowing for an export based monopoly to form.
An example would be Japan selling electronics in the U.S. at lower rates to capture market share even though those same electronics commanded a higher price in Japan.
Answer:
Explanation:
They are hurt because cotton is one of their exports and a developing nations needs to be able to make money from them so if a big country takes away one of their main exports it will hurt their economy.
Answer:
Explanation:
The journal entry will be:
Debit: Bad debt expense $2500
Credit: Allowance for doubtful $2500
Then, we will calculate the net amount of account receivable that should be included in current assets which will be:
Account receivable = $128000
Less: Allowance for doubtful = $500 + $2500 = $3000
Net amount of account receivable = $125000
