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Assume that the United States has a comparative advantage in aircraft manufacture and India has a comparative advantage in produ

AlekseyPX

Answer:

1. Explain who in the United States would gain?

The government of the United States will gain from the Import duties that will be charged on the Indian textiles.

2. Who might lose from dismantling trade barriers between the United States and India?

The USA will lose if trade barriers are dismantled.

The United States will lose from dismantling trade barriers because the Indian textile will be massively imported in the country thereby crippling the growth of the local textile manufacturing companies in the United States. India has a comparative advantage over the USA in the manufacturing of textiles, which are in constant demand compared to that of the aircraft which are rarely demanded.

Explanation:

1. The government of the United States will gain from the Import duties that will be charged on the Indian textiles. The government will make huge revenues from the import duties since India will manufacture the textiles at the cheapest costs per unit and influx the USA with affordable and quality clothing.

2. The USA will lose if trade barriers are dismantled.

The United States will lose from dismantling trade barriers because the Indian textile will be massively imported in the country thereby crippling the growth of the local textile manufacturing companies in the United States. India has a comparative advantage over the USA in the manufacturing of textiles, which are in constant demand compared to that of the aircraft which are rarely demanded.

5 0

3 years ago

If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change

dimaraw [331]

Answer: Option (A) is correct.

Explanation:

Given that,

Money supply increases (M) = 12 percent

Velocity decreases (V) = 4 percent

Price level increases (P) = 5 percent

Real GDP (Y) = ?

According to the quantity theory of money,

Percent Change in M + Percent Change in V = Percent Change in P + Percent Change in Y

12% - 4% = 5% + Percent Change in Y

Percent Change in Y = 8% - 5%

= 3%

Therefore, change in real GDP must be 3%.

6 0

3 years ago

Elite Trailer Parks has an operating profit of $200,000. Interest expense for the year was $10,000; preferred dividends paid wer

11Alexandr11 [23.1K]

Answer:

a. Earnings per share = (Operating profit - Interest expense - Tax - Preferred dividends) / Common stock outstanding

Earnings per share = ($200,000 - $10,000 - $61,250 - $18,750) / $20,000

Earnings per share = $110,000 / 20,000 Shares

Earnings per share = $5.5 per share

Common dividends per share = Dividend paid / Common stock outstanding

Common dividends per share = $30,000 / 20,000 Shares

Common dividends per share = $1.50 per share

b. What was the increase in retained earnings for the year?

Increase in retained earnings = $110,000 - Common dividend paid

Increase in retained earnings = $110,000 - $30,000

Increase in retained earnings = $80,000

So, the increase in retained earnings for the year is $80,000.

3 0

3 years ago

Synovec Corporation is expected to pay the following dividends over the next four years: $5.20, $16.20, $21.20, and $3.00. After

umka21 [38]

Answer:

Present value = $92.6899 rounded off to $92.69

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,

Present value = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3 + D4 / (1+r)^4 +

[(D4 * (1+g) / (r - g)) / (1+r)^4]

Where,

r is the required rate of return
g is the constant growth rate in dividends

Present value = 5.2 / (1+0.09) + 16.2 / (1+0.09)^2 + 21.2 / (1+0.09)^3 +

3 / (1+0.09)^4 + [(3 * (1+0.055) / (0.09 - 0.055)) / (1+0.09)^4]

Present value = $92.6899 rounded off to $92.69

6 0

3 years ago

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b

sattari [20]

Answer:

Clayborn Company

The adjusted cash account balance (debit) should be:

$23,150

Explanation:

a) Data and Calculations:

Cash account balance (debit) $24,525

Bank Statement balance $21,800

Reconciliation issues:

Deposit in transit $ 7,450

Outstanding checks $ 6,100

Bank service fees, not yet recorded by company $ 100

A NSF check from a customer, not yet recorded by the company $ 1,275

b) Adjusted Cash balance:

Cash account balance (debit) $24,525

NSF check (1,275)

Bank service fees (100)

Adjusted cash balance (debit) $23,150

c) Adjusted Bank Statement balance:

Bank Statement balance $21,800

Deposit in transit 7,450

Outstanding checks (6,100)

Adjusted bank statement $23,150

4 0

3 years ago