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4 years ago

Which of the following statements is true of globalization?

Business

1 answer:

sladkih [1.3K]4 years ago

8 0

Answer:

Explanation:

Economic globalization is a historical process, the result of human innovation and technological progress. It refers to the increasing integrations of the economies arround the world, particularly through the movement of goods, services and capital across borders.

Is foundamentally the integration of various political, economic and cultural systems. The conversion and interconnection of people, places and ideas that collectively transforms the economy and increases the productivity and growth of businesses.

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An investor company owns 40% of the outstanding common stock of an investee company, which allows the investor to exercise signi

Alla [95]

Answer:

a. How much equity income should the investor report in its net income (i.e., as part of the current year income statement)?

$280,000

b. What amount should the investor report for the Equity Investment in its balance sheet at the end of the year?

$950,000

Explanation:

Since the investor company uses the equity method, the journal entry to record the purchase of the stock should be:

Dr Investment in XYZ company 750,000

Cr Cash 750,000

When the dividends are received, the following journal entry is made:

Dr Cash 80,000

Cr Investment in XYZ 80,000

At the end of the year, the investor must report:

Dr Investment in XYZ 280,000 (= $700,000 x 40%)

Cr Revenue on investment in XYZ 280,000

Dividends are not considered income when you use the equity method, they only reduce the value of the investment.

Value of the investment account = $750,000 - $80,000 + $280,000 = $950,000

7 0

4 years ago

If the exchange rate between the u.s. dollar and japanese yen changes from $1=70 yen to $1=100 yen, then?

bulgar [2K]

If the exchange rate between the U.S. dollar and Japanese yen changes from $1 = 100 yen to $1 = 90 yen, then: Japanese tourists to the U.S. will benefit.

What happens in the foreign exchange market when a surplus of dollars exists?

The supply and demand of each currency must be equal in order for the foreign exchange market to be in equilibrium, as it is in every market.
Until equilibrium is reached, the exchange rate will change according to whether there is a surplus or shortage on the market.

What connection exists between the supply of foreign currency and the exchange rate?

This decreases demand for exports and reduces the amount of foreign currency available, much like how domestic goods become more expensive for foreign consumers when the foreign exchange rate declines.
As a result, there is a direct connection between the supply of foreign currency and the foreign exchange rate.

Learn more about foreign exchange

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8 0

2 years ago

Savings bonds differ from most other bonds in that

pantera1 [17]

Answer: They provide a higher rate of return.

They are held for a shorter time. The buyer does not receive periodic interest payments in exchange for a lower purchase price.

5 0

4 years ago

Vaughn Manufacturing incurred the following costs for 84000 units: Variable costs $504000 Fixed costs 392000 Vaughn has received

kirill [66]

Answer: $9.80

Explanation:

The unit price to earn $5000 on the order will be calculated thus:

The variable costs for 2500 units will be:

= 504000/84000 × 2500

= 15000

The unit price will now be:

= (15000+4500+5000) / 2500

= 24500 / 2500

= $9.80

The unit price is $9.80

5 0

3 years ago

A 6.75 percent coupon bond with 26 years left to maturity can be called in six years. The call premium is one year of coupon pay

kiruha [24]

Answer:

The yield to call is 5.07%

Explanation:

The yield to call can be computed using the rate formula in excel,which is given as :=rate(nper,pmt,-pv,fv)

nper is the number of years to call which is 6 years

pmt is the annual interest coupon payable by the bond,which is :6.75%*$1000=$67.5

The pv is the current price at which the bond is offered to investors. i.e $1,135.25

fv is the price at the bond would be called in six years i.e par value+premium

par value is $1000

premium is $67.5

call price is $1067.5

=rate(6,67.5,-1135.25,1067.5)

rate=5.07%

8 0

3 years ago