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timofeeve [1]
3 years ago
8

Consider the following data on the factor endowments of two countries, A and B: Labor Force (millions of workers) 45 20Capital S

tock (thousands of machines) 15 10a. Which country is relatively capital abundant? b. Which country is relatively labor abundant? c. Suppose that good S is capital intensive relative to good T. Which country will have comparative advantage in the production of S? Explain.
Business
2 answers:
SCORPION-xisa [38]3 years ago
5 0

ANSWER

a . Relatively Capital Abundant Country : B

b. Relatively Labour Abundant Country : A

c. Comparative Advantage in Capital Intensive Good : B

EXPLANATION

Labour abundant country is a country whose labour endowment (ownership) is more , compared to other country .

Capital Abundant country has capital endowment more compared to other country.

In this case ,

Country A has 45Labour > 20L in country B So , is labour intensive.

Country B has 15 capital > 10 C

So , is capital intensive .

As per H.Ohlin Comparitive Endowment theory , Ricardo Comparitive Advantage theory :

A country should specialise in producing goods which uses its 'abundant' factor 'intensively' , because it has comparitive cost advantage in production of that good (being it abudant & hence cheap) .

So , S Capital Intensive good should be produced by Capital Abundant Country B

Similarly , labour intensive good should be produced by country A

Alexus [3.1K]3 years ago
4 0

Answer:

a. Country A

b. Country B

c. Country A

Explanation:

Given

For Country A

Labor force = 45 million = 45000000

Capital Stock = 15 thousand= 15000

For Country B

Labor Force = 20 million = 20000000

Capital Stock = 10 thousand = 10000

a. Which country is relatively capital abundant

A country is capital abundant if its endowment of capital relative to other factors is large compared to other countries.

We calculate the capital/labor ratio for each country.

For A, Ratio = 45000000÷15000 = 3000

For B, Ratio = 20000000÷10000= 2000

The Ratio of country A is greater than B.

So, A is capital redundant.

b. Which country is relatively labor abundant

A country is labour abundant if its endowment of labour relative to other factors is large compared to other countries.

We calculate the labor/capital ratio for each country

For A, Ratio = 15000÷45000000 = 0.000333

For B, Ratio = 10000÷20000000 = 0.0005

The Ratio of country B js greater than A

So, B is capital redundant.

c. Suppose that good S is capital intensive relative to good T. Which country will have comparative advantage in the production of S?

Heckscher–Ohlin theorem in the two-factor case, it states: "A capital-abundant country will export the capital-intensive good, while the labor-abundant country will export the labor-intensive good"

So, if product S is capital intensive relative to T then country A will have more advantage in production of product T to aid their exportation.

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drek231 [11]

Answer:

Current Ratio (in %) = 157.89473684211%  rounded off to 157.89%

The current ratio of 157.89% means that the company has 157.89% of current assets to pay off 100% or all of its current liabilities. To understand it better, we can say that to pay off every $1 of current liability, the company has $1.5789 of current assets. Thus, the company has enough current assets to pay off its current liabilities.

Explanation:

The current ratio is a measure of liquidity of a business. It is calculated by dividing the current assets by the current liabilities of the company. To express current ratio in a percentage form, we use the following formula,

Current Ratio (in %) =  [Current Assets / Current Liabilities] * 100

Current Ratio (in %) = [30000 / 19000] * 100

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5 0
3 years ago
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Answer:

The journal entries are made as follows;

Explanation:

March 2.   Account Receivable-Mcleena Co.       Dr.$800,000

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March 6.  Sales Revenue             Dr.$140,000

               A/R-Mcleena Co.          Cr.$140,000

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Newlife Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount
Contact [7]

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$7.63

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Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.

Formula for PV of dividend

PV of Dividend = Dividend x ( 1 + r )^-n

1st year

PV of Dividend = $0.63 x ( 1 + 15% )^-1 = $0.55

2nd year

PV of Dividend = $0.68 x ( 1 + 15% )^-2 = $0.51

3rd year

PV of Dividend = $0.83 x ( 1 + 15% )^-3 = $0.55

4th year

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After four years the dividend will grow at a constant rate of 4.1%, so we will use the following formula to calculate the present value

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iragen [17]

Answer:

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Thus, the best option for Liz in the given case is to analyze the GDP of these countries.

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Lorico [155]
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I hope my answer has come to your help. Thank you for posting your question here in Brainly.
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