Answer:
Please help me bro i have an exam
Answer:
d. buyback
Explanation:
The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.
Total Cost of Input=$9*50units
=$450
Cost per unit of productions=Total Cost/Output
=450/300
=$1.50 per unit
24) B
25) A
Don't want to give you too many answers, since I see it's a test. Hope this helps you out though. Good luck on your test
- Just Peachy
The correct answer is C) imports will decrease and exports will decrease by an equal amount.
In a small open economy with a floating exchange rate, if the government imposes a tariff on foreign goods, then in the new short-run equilibrium: imports will decrease and exports will decrease by an equal amount.
In a floating exchange rate, the currency price of the nation is set by supply and demand. The forex market allows supply and demand to determine the currency exchange rate. The opposite of this situation is a controlled rate in countries where the federal government exert control to the currency.
