Answer:
(a). A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer.
-<u> Increase in exports while no change in imports</u>.
(b). The Sony pension fund buys a bond from the U.S. Treasury.
- <u>Decrease in a net outflow of capital. Thus, it would be considered as a negative inflow/outflow</u>.
(c). An American investor buys a controlling share in a South Korean electronics firm.
- <u>Increase in Net Capital outflow for the U.S</u>.
Explanation:
Exports are described as the selling of domestic goods to a foreign country while Imports are characterized as the process of bringing in foreign goods to the domestic country. And Capital outflow is defined as the exact flow of funds from domestic to foreign and foreign to the domestic country.
In the first case, the purchase reflects a rise in exports as the domestic product is sold to the foreign country. In the second situation, the net outflow of the capital would decreases as it demonstrates a foreign purchase of a domestic asset. In the third example, the American investors' purchase of a South Korean firm demonstrates a domestic purchase of a foreign asset and thus, the net capital outflow would rise.
Answer:
identify the criteria that are important in making the decision.
Explanation:
Rational decision-making is a step-by-step method for choosing the best choice from the options and is carried out on the basis of reasoning, objectivity and examination of any factor before concluding
Therefore according to the above explanation the correct answer is to identify the criteria that are important in making the decision as it is the first step of rational decision making.
This idea is most consistent with LAISSEZ FAIRE type of management in which the employees are allowed to use their ideas and creativity to flourish in their areas of specialization. The management takes a back seat role in the company and only offer guidance when needed.
The opposite of a non convertible currency would be a convertible one
Answer:
$45.76
Explanation:
Next dividend = Dividend just paid * (1 + Dividend growth rate) = $3.71 * (1 + 0.036) = $3.84356
Using the formula for the dividend discount model, we can calculate he price per share of the company's stock as follows:
Stock price = Next dividend / (Required return - Dividend growth rate) = $3.84356 / (0.12 - 0.036) = $45.76
Therefore, the price per share of the company's stock is $45.76.
