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slavikrds [6]
3 years ago
15

While different natural resources and the theory of comparative advantage can explain many trade patterns, they cannot explain a

ll types of trade that economists observe.
Consider each scenario in the following table and determine which theory best explains the trade pattern described.

Scenario

Dynamic Comparative Advantage

Product Life Cycle Theory

Intra-Industry Specialization

Ice wine is a special spirit that can only be made during a few months in the winter. The nations of Fruzenton and Grappovia are in different hemispheres, and each produces ice wine. During each nation’s winter, its ice wine industry produces enough to meet domestic demand and export to the other country. The ice wine exchanged between the two nations is nearly identical.
For many years, the nation of Stilettopia’s high-heel shoe producers have struggled in the international market because strict labor laws have made it hard to get productivity out of Stilettopians. In an effort to stimulate its industry, legislators in Stilettopia approve a bill that reduces the minimum wage and extends the number of hours shoe laborers can work in a day. Once the new policies take effect, Stilettopian high-heel shoe makers have lower costs than international competition and are able to reduce prices to the point that there is demand to export their shoes.
Since the turn of the century, nearly all X-ray machines purchased by hospitals have been made in Alloway. However, engineers in Osteoville recently designed an X-Ray machine that produces much more accurate results, leading to fewer malpractice cases and more reliable diagnoses. These new X-ray machines quickly become the industry standard. As a result of this, the production of X-ray machines is thriving in Osteoville, while firms in Alloway lose market share and begin trying to develop a new source of advantage.
Business
1 answer:
kakasveta [241]3 years ago
7 0

Answer:

Intra-Industry Specialization

Dynamic Comparative Advantage

Product Life Cycle Theory

Explanation:

Ice wine is a special spirit that can only be made during a few months in the winter. The nations of Fruzenton and Grappovia are in different hemispheres, and each produces ice wine. During each nation’s winter, its ice wine industry produces enough to meet domestic demand and export to the other country. The ice wine exchanged between the two nations is nearly identical.  Intra-Industry Specialization

For many years, the nation of Stilettopia’s high-heel shoe producers have struggled in the international market because strict labor laws have made it hard to get productivity out of Stilettopians. In an effort to stimulate its industry, legislators in Stilettopia approve a bill that reduces the minimum wage and extends the number of hours shoe laborers can work in a day. Once the new policies take effect, Stilettopian high-heel shoe makers have lower costs than international competition and are able to reduce prices to the point that there is demand to export their shoes.  Dynamic Comparative Advantage

Since the turn of the century, nearly all X-ray machines purchased by hospitals have been made in Alloway. However, engineers in Osteoville recently designed an X-Ray machine that produces much more accurate results, leading to fewer malpractice cases and more reliable diagnoses. These new X-ray machines quickly become the industry standard. As a result of this, the production of X-ray machines is thriving in Osteoville, while firms in Alloway lose market share and begin trying to develop a new source of advantage Product Life Cycle Theory

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Is a worker's human capital and his or her resulting productivity the ONLY determinants of that person's wage or salary?
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The correct answer is

<span>No, like all resources, supply and demand also affect how much a worker is paid.


For example, a worker doing the same computer job might be paid more in New York than in other places: this has to do with the fact that the demand and supply (in form of workers ready to work in NY for a certain wage) are different in those two places</span>
3 0
3 years ago
Herr Corporation has 3,000 shares of 8%, $120 par value preferred stock outstanding at December 31, 2017. At December 31, 2017,
Sliva [168]

Answer:

1. $28,800

$103,200

2. $28,800

$103,200

3. $86,400

$45,600

Explanation:

1. The dividend paid to preferred stockholders = Shares × Par value × Percentage

= 3,000 shares × $120 × 8%

= $28,800

The dividend paid to Common stockholders = Cash dividend - Dividend paid to preferred stockholders

= $132,000 - $28,800

= $103,200

2. The dividend paid to preferred stockholders = Shares × Par value × Percentage

Note :- Because preferred stocks are non-cumulative in nature, the company is not allowed to pay last two years' dividends and preferred stocks are liable for payment only for the current year.

= 3,000 shares × $120 × 8%

= $28,800

The dividend paid to Common stockholders =  Cash dividend - Dividend paid to preferred stockholders

= $132,000 - $28,800

= $103,200

3. The dividend paid to preferred stockholders = Shares × Par value × Percentage × Number of years

Note: Since preferred stocks are cumulative in nature, the company is forced to pay last two years' dividends along with the current year's dividend.

= 3,000 shares × $120 × 8 % × 3 years

= $86,400

The dividend paid to Common stockholders = Cash dividend - Dividend paid to preferred stockholders

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4 0
3 years ago
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost
ANTONII [103]

In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)

Explanation:

To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category

Profit margin =  (market value - cost price) = Profit ÷ cost price × 100

Class 1:

Model A

46 $116 $139  

Profit margin = (139 - 116) = 23  ÷ 116 × 100 = 19.32%

Model B

49 243 239

Profit margin =  (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)

Model C

43 233 252

Profit margin =   (252 - 233) = 19 ÷ 233 × 100 =  8.15%

Class 2:

Model D

37 79 98

Profit margin =  (98 - 79) = 19 ÷ 79 × 100 =  24%

Model E

6 151 130

Profit margin =  (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)

Result

In class 1

Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%

In class 2

Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%

Overall the Model D is the Top/ favorite one having highest market return with lowest inventory cost

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3 years ago
Becca works for a large management-consulting firm, as a junior level consultant. she recently learned that another consultant w
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5 0
3 years ago
Franklin Painting Company is considering whether to purchase a new spray paint machine that costs $4,800. The machine is expecte
Readme [11.4K]

Answer:

rate of return: 16.67%

Explanation:

unadjusted rate of return

\frac{average \: return}{average \: investment}

Average investment

Assuming no salvage value:

(beginning investment + ending investing)/2

(4,800 + 0 )/ 2 = 2,400

<u>cost savings:</u> 720

<u>depreciation:</u> 4,800 / 15 = 320

average  return 400

400/2400 = 16.67%

3 0
3 years ago
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