Answer: (D) Globalization of production
Explanation:
The globalization of the production is the process of sourcing the various types of products and the services which involve the capital flows and the trading worldwide.
The production of the various types of products and the services at very low cost is one of the main advantage of the globalization.
According to the given question, the globalization of production is one of the practicing that helps in demonstrating the given west electronic corporation situation.
Therefore, Option (D) is correct answer.
Answer:
The correct answer is letter "C": $75.
Explanation:
The outstanding balance in a credit card represents the amount of money the account holder used out of the credit limit of the card. It also represents the debt the cardholder has with the financial institution that issued the card. The full credit limit will be available once the outstanding balance is paid off.
Thus, if the credit limit of a card is $800 and its outstanding balance is $725, the account holder can use $75 ($800-$725 = $75) for the upcoming month.
Answer:
a) Parent's investment in the Subsidiary is reduced by $4,500.
Explanation:
The computation is shown below:
The balance in investment prior to the sale of securities is
= $150,000 × 90%
= $135,000
Now The balance in investment after to the sale of securities is
= (($150,000 + 24,000) × 75%)
= $130,500
Therefore Decrease in investment in Subsidiary is
= $135,000 - $130,500
= $4,500
Hence, the correct option is A.
Answer:
d. substitution bias.
Explanation:
Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. The problem this creates for inflation calculations is called substitution bias.
A problem with the Consumer Price Index (CPI) arises from the singular fact that, when the price level of a product becomes relatively less expensive or lower, consumers tend to buy more quantity of the product and consequently, a lesser quantity of goods that are relatively more expensive.
Hence, their spending pattern changes with respect to the prices but it's not completely adjusted with the Consumer Price Index (CPI), thus, making the inflation rate to differ because of the problem of substitution bias.
