Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
A)not negate the logical basis for trade in the Ricardian model.
Explanation:
Trade can be regarded as basic economic concept which involves the buying as well as selling of goods and services, having a compensation that is been paid by a buyer to a seller.
The Ricardian model can be regarded as model that incorporates the standard assumptions of a perfect competition. This model in it's simplest form give assumption of two countries that are producing two goods, but uses one factor of production, the goods here are usually assumed to be identical, or to be homogeneous, within as well as across countries. It should be noted that when there is higher wage, there will be greater number of workers that are willing to work and vice versa, which defined the relationship between wages and productivity. productivity gives the
measurement of how efficiently labor
is been utilized when producing goods and services.
It should be noted that If labor productivities were exactly proportional to wage levels internationally, this would not negate the logical basis for trade in the Ricardian model.
Answer:
The company will have to pay $5,100 per employee in separation costs if these exit interviews are implemented next year
Explanation:
Data provided in the question:
Percentage downsize in the workforce = 15% = 0.15
Cost of exit interviews = $100
Normal separation cost = $5,000
Now,
Total separation cost per employee = Cost of exit interviews + Normal separation cost
= $100 + $5,000
= $5,100
Therefore,
The company will have to pay $5,100 per employee in separation costs if these exit interviews are implemented next year
Answer:
The answer is: 1,375 balloon bundles
Explanation:
We can calculate how many balloon bundles must be sold using the following formulas:
- contribution margin per unit = Selling price per unit – Variable cost per unit
- Units = (Fixed costs + Target profit) / (contribution margin per unit)
Contribution margin per unit = $10 - $2 = $8
units = ($5,000 + $6,000) / $8 = $11,000 / $8 = 1,375 units
Answer: Investment for Desmond and US foreign direct investment.
Explanation:
This is an investment for Desmond because he owns the store. He is therefore the equity shareholder and investor into the store.
It is also a U.S. Foreign Direct Investment (FDI) because FDI is what describes a situation where an entity from a country goes to another country and sets up a business there that they will own and operate. Desmond being a U.S. citizen is operating a store in another country so this is U.S. FDI.
