Trade restrictions tend to preserve relatively few jobs in the protected industries and lead to job losses in other industries. Trade restrictions can vary from quotas, embargoes, standards, subsidies, tariffs and more that make it hard to trade (important/export) goods between two companies and also set prices for these. Depending on what is allowed and what is not different industries can benefit from the trade restrictions and some can be harmed by them.
Answer:
The correct answer is option B.
Explanation:
The total revenue and profits of the industry as the price level increases with increase in the demand.
When there is an increase in the demand for the output of an industry, that industry will increase the production to match the increase in the demand. The increase in production will cause output level to increase.
In order to produce more output the industry will require more inputs, so the demand for inputs will increase.
An increase in the demand for inputs will be accompanied by increase in their prices.
There will not be any decline in the price of inputs.
Answer:
Country X will have higher growth potential than country Y.
Answer:
Total present value=$617,523.24
Explanation:
The formula for calculating continuous compounding is given as follows
F=P(e^it)
F=future value
P=present value
i=interest rate
t=time involved i.e 1 year or 2 year
e=Mathematical constant=2.7183
By applying above mentioned formula, the present value of inventory control software by Baron Chemicals shall be calculated as follows:
Present value of year 2 Cash flow= $286,555.76
($350,000/e^10%*2)
Present value of year 1 Cash flow= $180,967.48
($200,000/e^10%*1)
Present value of year 0 Cash flow= $150,000
Total present value=$617,523.24
