Concord Company pays cash dividends of $670. The entry for this transaction will include a debit of $670 to

Assume that the United States has a comparative advantage in aircraft manufacture and India has a comparative advantage in produ

AlekseyPX

Answer:

1. Explain who in the United States would gain?

The government of the United States will gain from the Import duties that will be charged on the Indian textiles.

2. Who might lose from dismantling trade barriers between the United States and India?

The USA will lose if trade barriers are dismantled.

The United States will lose from dismantling trade barriers because the Indian textile will be massively imported in the country thereby crippling the growth of the local textile manufacturing companies in the United States. India has a comparative advantage over the USA in the manufacturing of textiles, which are in constant demand compared to that of the aircraft which are rarely demanded.

Explanation:

1. The government of the United States will gain from the Import duties that will be charged on the Indian textiles. The government will make huge revenues from the import duties since India will manufacture the textiles at the cheapest costs per unit and influx the USA with affordable and quality clothing.

2. The USA will lose if trade barriers are dismantled.

The United States will lose from dismantling trade barriers because the Indian textile will be massively imported in the country thereby crippling the growth of the local textile manufacturing companies in the United States. India has a comparative advantage over the USA in the manufacturing of textiles, which are in constant demand compared to that of the aircraft which are rarely demanded.

5 0

3 years ago

Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR

hodyreva [135]

Answer:

C) 0.5 USD

Explanation:

Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.

4 0

3 years ago

As the attrition loss in a process increases, what happens to the yield?

sp2606 [1]

Answer:

The yield decreases

Explanation:

6 0

3 years ago

What is federal income tax?

katrin [286]

First off if you ever look at someone's paycheck it has a spot on there that tells you how much is taken away. There are so many different things associated with federal income tax. Social Security, Medicare, and Medicaid are all taken out due to Federal Income Tax. Social Security is suppose to pay you back for all they have taken once you retire.

8 0

3 years ago

Read 2 more answers

A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 80,000 km

liraira [26]

Answer:

Diesel engine taxis should be chosen.

Explanation:

Useful life = 5 years

Annual distance covered = 80000 km

For a diesel car

Annual fuel cost = (80000/16)*.88 = $4400

Present value of total cost = vehicle cost + present value of the fuel cost + present value of annual repair cost + present value of annual premium – present value of resale value

Present value of total cost = 24000 + 4400*(1-1/1.06^5)/.06 + 900*(1-1/1.06^5)/.06 + 1000*(1-1/1.06^5)/.06 - 4000/1.06^5

Present value of total cost = $47548.86

Let, uniform annual cost = EUAC1

Then, EUAC1 = 47548.86/((1-1/1.06^5)/.06)

EUAC1 = $11287.93

For a gasoline car

Useful life = 4 years

Annual fuel cost = (80000/11)*.92 = $6690.91

Present value of total cost = vehicle cost + present value of the fuel cost + present value of annual repair cost + present value of annual premium – present value of resale value

Present value of total cost = 19000 + 6690.91*(1-1/1.06^4)/.06 + 700*(1-1/1.06^4)/.06 + 1000*(1-1/1.06^4)/.06 - 6000/1.06^4

Present value of total cost = $43322.83

Let, uniform annual cost = EUAC2

Then, EUAC2 = 43322.83/((1-1/1.06^4)/.06)

EUAC2 = $12502.6

Conclusion: The diesel engine taxis should be chosen because it offers relatively lower uniform annual cost compared to the gasoline engine taxis

3 0

3 years ago