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velikii [3]
3 years ago
7

We typically hear of the gains from trade coming through specialization wherein each nation produces more of and exports that go

od which it produces at relatively less cost, and produces less of and imports that good which it produces at relatively higher cost. Indeed, classical trade theory is based on the benefits from such specialization in production. But, what if the nation cannot move any resources from the production of one good to the production of other and therefore cannot specialize in production
Business
1 answer:
Brut [27]3 years ago
7 0

Answer:

Generally theoretical models work only in theory. E.g. perfect competition models exist in theory but no market is really a perfect competition market.

The Ricardian model or the H-O model, or other trade models make the mistake of assuming that resources can be allocated at will and almost immediately, e.g. a fisherman can immediately become an engineer and start developing apps. Or a farmer that produces corn or rye (very popular examples) can suddenly start working at a factory producing bluejeans.

In real life, it doesn't happen. Also, trade models never consider natural trade barriers and extra costs related to trade. E.g. it is not the same to sell $10,000 worth of corn (you need a very large truck) than selling $10,000 worth of jeans (all you need is a small delivery van). In real life, trade is not simple, it is actually extremely complicated.

E.g. everyone knows that manufacturing goods in America is not efficient, at best companies can be less inefficient, but no manufacturing company in America is really efficient if we compare them to foreign companies. Even people who work in manufacturing industries know this, but they want to continue working in them. They want the companies to keep producing in America and they want to keep their jobs. Not everyone in America has a college degree in computer programming, finances, is able to design robots, or is a doctor, etc.

In real life, efficient industries have to exist alongside inefficient industries, and the whole economy suffers from it. But it is unavoidable. In the long run, the economy will eventually shift resources to more efficient industries,  but it takes a long time, and a lot of people and companies will be against it. E.g. every year there are less shoe manufacturers in America, and eventually sometime in the future there will be none.

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discuss how the central bank uses the open market operations as a sutible measure of credit control. Explain with respect to bot
Hunter-Best [27]

Answer: By affecting the money in circulation

Explanation:

The central bank uses the open market operations as a sutible measure of credit control by affecting the quantity of money in circulation. It's the central bank that prints money that's being used, to avoid economical unbalance, the central bank has to regulate how the money is circulated in the country. They do this by either selling or buying government securities through open market operations. During this process the purchase government securities from commercial banks and institutions making bank assets free and more cash for loans.

8 0
3 years ago
Jim Jones, the landlord, rents a property to Tom Smith, a physically disabled person. Mr. Smith, with Mr. Jones' permission, mod
Vesnalui [34]

Answer:

restore the wide doorways, that were installed for his wheelchair, to the original size.

Explanation:

When a tenant leaves a property, he must restore it to the same state as when he entered it. But some exceptions may apply:

  • All the improvements done to the property belong to the landlord and if he decides to keep them, the tenant will not be required to remove them.
  • Some improvements, like increasing the width of a door, are not detrimental to future tenants, therefore the tenant is not required to restore them to their original condition.  
3 0
3 years ago
What is a risk assessment?
natta225 [31]

Answer:

Risk assessment is one of the steps used in a risk management process. The risk R is assessed by measuring the two parameters that determine it, the magnitude of the possible loss or damage L, and the probability p that said loss or damage will occur. According to ISO 31000, the Risk Assessment actually refers to the Risk Assessment.

Risk assessment is probably the most important step in a risk management process, and also the most difficult and most likely to make mistakes. Once the risks have been identified and evaluated, subsequent steps to prevent them from occurring, protect against them or mitigate their consequences are much more programmatic.

Part of the difficulty in risk management is that measuring the two parameters that determine risk is very difficult, which is why it is said to be a subjective process. The uncertainty associated with the measurement of each of the two parameters (L and p) is usually large. Risk management would also be simpler if it were possible to have a single metric that reflects all available information in the measurement. However, this is not possible, since it is about measuring two quantities. A risk with great magnitude of loss or damage and a low probability of occurrence must be treated differently than a risk with a reduced magnitude of loss or damage and a high probability of occurrence. In theory the two indicated risks have an identical priority for their treatment, but in practice it is quite difficult to manage them when faced with limitations in the available resources, especially time to carry out the risk management process.

3 0
3 years ago
Sophie made pies and sold them from her food truck to local businesses. This is an example of a(n) Group of answer choices simpl
Dimas [21]

Answer:

direct marketing channel.

Explanation:

A distribution channel is made up of the chain of entities or intermediaries through which goods pass before reaching the end consumer. In the direct marketing channel, a producer delivers the product directly to the end consumer. Direct marketing channel does not have any intermediaries such as wholesalers, distributors or retailers.

Direct marketing is suitable for small business that cannot afford the cost of intermediaries. It is also ideal to manufactures with low volumes of production, or those that cover a small geographical area.  Sophie does direct marketing as she produces and sells to the consumers directly.  By engaging in direct marketing, Sophie is in control of all aspects of distribution.

3 0
3 years ago
Adam is a traveling salesperson for Peter Petri Plumbing Supply Corp. Adam has express authority to solicit orders from customer
Juliette [100K]

Answer:

Explanation:

Liability of Petri:

On all the purchases, if payment is made within 30days from delivery, Petri gave the authority of a 5% discount to Adam. Upon extension of credit to customers,  no terms were given to Adam.

In the case under consideration, Adam explicitly gave a false representation of his authority to get more sales on his account and thus, Petri is NOT accountable to John on his terms with Adam.

Liability of John:

Being a customer to Petri, John has to discover the detailed terms on discount and other payment terms with Petri when he called Petri. John is also accountable to make clarifications whether Adam has the authority to give a 10% discount and making payment in three installments.

In the case under consideration, John has failed to find the exact details on whether Adam has the authority to give a 10% discount. Thus, he is accountable to make the payment of $9500 in 30days.

6 0
3 years ago
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