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frosja888 [35]
3 years ago
13

Tire production in the United States has been on the decline, in both absolute and relative terms. Imported tires are replacing

most of the domestically manufactured tires in the market. Trade unions in the United States have claimed that over 7,000 jobs have been lost due to Chinese tire imports. You read a blog post that uses this example to say that this is exactly why countries should not engage in free trade: cheaper imports will flood the domestic market and unemployment in the country will increase. Do you think the blogger's conclusions are entirely correct? (Check all that apply) A. Yes, because the country loses jobs and workers are made worse off. B. No, because the efficiencies gained from exploiting comparative advantage generate more winners than losers. C. Yes, because the losers from free trade are likely to outnumber the winners, making the country worse off overall. D. No, because the winners from free trade could compensate the losers.
Business
1 answer:
Helen [10]3 years ago
6 0

Answer:

B. No, because the efficiencies gained from exploiting comparative advantage generate more winners than losers.

Explanation:

Everything has its all pros and cons. When international trade takes place, people in the economy are happy, because of wide variety and options given.

Further the traders, manufacturers also tend to grow as due to competition they improve with the quality standards, designs, variations, etc:

Competition forces to excel in any kind of job you do. And that only the best players and performers stay in the market.

This is the advantage, of such international trades.

You might be interested in
Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its install
Doss [256]

Answer:

a. Charter should recognize $80,000 as gross profit in 2013; and Charter should recognize $92,500 as gross profit in 2014.

b. The balance in the deferred gross profit account at the end of 2013 should be $105,000; and the balance in the deferred gross profit account at the end of 2014 should be $120,500.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. Kindly see the attached pdf file for the represented complete question with the sorted data.

The explanation to the answers is now given as follows:

Installment sales method can be described as a revenue recognition technique where a business postpone profit on a sale until when the cash is received from the buyer. A proportion of the profit based on gross profit percentage is then recorded as a profit for the period when the cash is received from the buyer.

This method can be applied to this question as follows:

Gross profit in 2013 = Installment sales in 2013 - Cost of installment sales in 2013 = $370,000 - $185,000 = $185,000

Gross profit percentage in 2013 = (Gross profit in 2013 / Installment sales in 2013) * 100 = ($185,000 / $370,000) * 100 = 0.50 * 100 = 50%

Gross profit in 2014 = Installment sales in 2014 - Cost of installment sales in 2014 = $360,000 - $252,000 = $108,000

Gross profit percentage in 2014 = (Gross profit in 2014 / Installment sales in 2014) * 100 = ($108,000 / $360,000) * 100 = 0.30 * 100 = 30%

a. How much gross profit should Charter recognize in 2013 and 2014 from installment sales?

<u>Gross to recognize in 2013:</u>

Gross recognized in 2013 in respect of 2013 instalment sales = Cash collections in 2013 on installment sales during 2013 * Gross profit percentage in 2013 = $160,000 * 50% = $80,000

Therefore, Charter should recognize $80,000 as gross profit in 2013.

<u>Gross to recognize in 2014:</u>

Gross recognized in 2014 in respect of 2013 instalment sales = Cash collections in 2014 on installment sales during 2013 * Gross profit percentage in 2013 = $110,000 * 50% = $55,000

Gross recognized in 2014 in respect of 2014 instalment sales = Cash collections in 2014 on installment sales during 2014 * Gross profit percentage in 2014 = $125,000 * 30% = $37,500

Total gross profit to recognize in 2014 = Gross recognized in 2014 in respect of 2013 instalment sales + Gross recognized in 2014 in respect of 2014 instalment sales = $55,000 + $37,500 = $92,500

Therefore, Charter should recognize $92,500 as gross profit in 2015.

b. What should be the balance in the deferred gross profit account at the end of 2013 and 2014?

<u>For 2013:</u>

Balance in the deferred gross profit in respect of 2013 account at the end of 2013 = Gross profit in 2013 - Gross recognized in 2013 in respect of 2013 installment sales = $185,000 - $80,000 = $105,000

Therefore, the balance in the deferred gross profit account at the end of 2013 should be $105,000.

<u>For 2014:</u>

Balance in the deferred gross profit account in respect of 2013 at the end of 2014 = Balance in the deferred gross profit in respect of 2013 account at the end of 2013 - Gross recognized in 2014 in respect of 2013 installment sales = $105,000 - $55,000 = $50,000

Balance in the deferred gross profit in respect of 2014 account at the end of 2014 = Gross profit in 2014 - Gross recognised in 2014 in respect of 2014 installment sales = $108,000 - $37,500 = $70,500

Total balance in the deferred gross profit account at the end of 2013 = Balance in the deferred gross profit account in respect of 2013 at the end of 2014 + Balance in the deferred gross profit in respect of 2014 account at the end of 2014 = $50,000 + $70,500 = $120,500

Therefore, the balance in the deferred gross profit account at the end of 2014 should be $120,500.

Download pdf
6 0
3 years ago
Can anyone PLZZZ HELP me with all that plzzz. For 10 POINTS PLZZZ. :(((((
maxonik [38]

LAST QUESTION ANSWER: Federal Trade Commission (FTC)

3 0
3 years ago
Read 2 more answers
Lucas Laboratories' last dividend was $1.50. Its current equilibrium stock price is $15.75, and its expected growth rate is a co
Elis [28]

Answer:

Expected dividend yield = 10.0%

Expected capital gains yield =  5.0%

Explanation:

D0 = $1.50 (Given)

E(D1) = D0 * (1 + g) = $1.50 * (1.05) = $1.575

E(P0) = $15.75 (Given)

E(P1) = $15.75 * (1.05)1 = $16.5375

Expected dividend yield = E(D1) / E(P0)

= $1.575 / $15.75 = 0.100 = 10.0%

Expected capital gains yield = (E(P1) - E(P0)) / E(P0)

($16.5375 - $15.75) / $15.75 = 0.050 = 5.0%

4 0
3 years ago
Qwest Communications International, Inc. borrowed $499,000 on November 1, 2021, and signed a 12-month note bearing interest at 8
kobusy [5.1K]

Answer:

Interest Payable - 2021 = $6653.33  rounded off to  6653

Explanation:

The accrual principle in accounting requires the revenue and expenses for a period to be matched and recorded in their corresponding or respective periods. Thus, even though the interest on note will be paid at maturity in 2022, the interest expense related to the month of November 2021 and December 2021 will be recorded in the current year at 31 December as interest payable.

Interest Payable - 2021 = 499000 * 8% * 2/12

Interest Payable - 2021 = $6653.33  rounded off to  6653

8 0
3 years ago
When cisco systems inc. of san jose, california, and tata consultancy services of mumbai, india, entered into their __________,
ser-zykov [4K]
Strategic aliance is collaborative relationship between independent firms. Though this relationship the partnering firms  do not invest in one another, which means <span>do not create an equity partnership</span>
<span>Example is when Cisco systems inc. of San Jose, California, and Tata consultancy services of Mumbai, India, entered into their strategic aliance.  They both continued to develop market-ready infrastructure and network solutions for customers, but they relied on each other to provide the training and skills that one or the other might have lacked.</span>
3 0
3 years ago
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