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Leya [2.2K]
3 years ago
12

After the formation of a free trade area for its member countries, the United States found that its high-cost furniture producer

s in North Carolina were replaced by low-cost producers from another country within the free trade area. This is an example of ________.
Business
1 answer:
Damm [24]3 years ago
6 0

Answer: Trade creation

Explanation:

Trade creation is the increase in economic welfare which occurs when a country joins a free trade area, like the customs union. Trade creation will happen when the ltariff barriers has been reduced which leads to lower prices.

Trade creation leads to lower cost on producers which will lead to a rise in economic welfare and consumer surplus. Trade creation also leads to expansion of trade.

You might be interested in
How does Alibaba implement competitive pricing strategy in market?
laila [671]

Answer:

<u>By reducing their prices compare to the price of their competitors.</u>

Explanation:

Note, a <u>competitive pricing strategy</u> refers to a pricing strategy that involves <em>deliberately </em>finding out the prices in which your competitor sells their product and then tailoring yours to be a little lower than theirs, by so doing customers feel motivated to buy from you instead.

For example, Alibaba can go to its competitor, let's say Amazon. and see how sells an iPhone. Then Alibaba can reduce/set its own price benchmark based on their prices.

6 0
2 years ago
A(n) ______ is an assessment that defines jobs and the behaviors necessary to perform them.
tamaranim1 [39]
Is Job analysis one of the options?
7 0
3 years ago
Intentionally reporting product sales in the financial statements for the period prior to when they actually occurred is a viola
SSSSS [86.1K]

Answer:

d. Revenue recognition

Explanation:

The principle of revenue recognition occurs when the revenue is recognized or earned whether cash is obtained or not and it also meets the accounting accrual basis. Realizable here implies that the customer receives the product but the payment was made afterward.

Since the given scenario reflects the violation of the revenue recognition principle.

6 0
3 years ago
Reliable Waterworks provides plumbing services. Transactions of Reliable Waterworks during the first year of operations are give
Mariana [72]

Answer:

$30,900

Explanation:

Assets are major components of the statement of financial position. They are defined as anything owned by a company as a result of past activities that result to an inflow of economic benefits

                     Cash    Asset    Liability     Expenses  

Capital        11000     11000

Equipment    (1400)    1400                      

Loan             15000    15000     15000

Rent               (100)      (100)                           100

Inventory       (400)      400

Sales             3200      3200

Total                            30900     15000

7 0
3 years ago
To determine whether the goal of stable prices is being​ achieved, the Federal Reserve monitors the​ ________; to determine whet
Kay [80]

Answer:

Core PCE deflator inflation rate;

the Output gap

Explanation:

Goals of Monetary Policy

There are several goals of monetary policy. They includes maximum employment, stable prices, and moderate long-term interest rates. Usually in the long run, the above goals works in harmony and empower each other, but in the short run, they might be in conflict. The main goal of this policy is price stability as it is the source of maximum employment and moderate long-term interest rates.

The Fed has two possible instruments:they includes;

1. Monetary base

2. Federal funds rate

Output Gap

When this gap is positive, an inflationary gap, the inflation rate increases drastically or accelerate. This will make the Fed to consider raising the federal funds rate. It is said that If the output gap is negative, a recessionary gap, inflation might ease. Thereby making the Fed to consider lowering the federal funds

The Stables Prices Goal

The Fed do put close attention to the CPI removing fuel and food which is the core CPI. The rate of increase in the core CPI is simply termed core inflation rate. The Fed do believes that the core inflation rate provides a better measure of the underlying inflation patterns and a better prediction of future CPI inflation.

5 0
3 years ago
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