Answer:
cause the bases for further specialization to disappear as nations specialize according to comparative advantage
Explanation:
Comparative advantage refers to the advantage while producing the goods and services at a lower cost compared with the competition or rivals in order to gain the maximum share in the market place
Now if there is an increased as compared with the constant so the impact would affect the basis for additional specialization to invisible as the nations specialized as per the comparative advantage
Answer:
Borrow in dollars then at spot rate convert money to british pound. Invest in the pounds for half a year and convert back to dollars.
Explanation:
Access to credit = $20000000
We do a conversion to pounds
= 20000000/2
= £10000000
When this is invested for 6 months
10000000 x 1 +4% x6/12
= 10000000(1+0.04*0.5)
= 10000000x1.02
= 10200000
We then make a conversion back to dollars
10200000 x 2.2
= 22,440,000 dollars
Loan to be repaid
20000000(1+6%x6/12)
= 20000000 x 1 +0.06*0.5
= 20000000 x 1.03
= 20,600,000
Then arbitrage profit = 22440000 - 20600000
= 1840000
Answer:
Please find attached file for complete answer solution and explanation of same question.
Explanation:
Answer:
Demand in January will be 640 units
So option (C) will be the correct option
Explanation:
We have given average demand for a particular product is 800 units
And seasonal index = 0.8
We have to find the demand in a particular session , that is in January
We know that seasonal index is given by
So 
So demand in January = 640
So option (c) will be the correct option
Answer:
unique selling propositions
