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3 years ago

What are the advantages of being a member of World Trade Organization

Business

1 answer:

frutty [35]3 years ago

8 0

Answer:

Explanation:

Every member country of the world trade organization enjoys the following benefits;

1. They enjoy more support for the development of their local industry

2. Member countries have access to get loan and incentives.

3. There is an existence of peacefully trading among member countries.

4. World trade organization helps members to grow their economy.

5. Through the growth of the economy, unemployment is reduced.

6. World trade organization also helps to resolve disputes among member countries

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Describe how each of the following would affect the U.S. production possibilities frontier: (a) an increase in the number of ill

Zepler [3.9K]

Answer:

A. The production possibilities frontier would shift outward. As a result of the increase in the number of illegal immigrants entering the country, there would be more labour available. As a result, production would increase shifting the PPC outward.

B. The production possibilities frontier would shift inward. A war would lead to the diversion of resources to the war. Also, production facilities might be destroyed as a result of the war. This would lead to an inward shift of the PPC

C. The production possibilities frontier would shift outward. The discovery would increase the resources that can be used in production. This would lead to an outward shift of the PPC

D. The production possibilities frontier would not change. This is because production was below the PPC as a result of unemployment. The decrease in unemployment will increase production back to a level on the PPC

E. production would take place at a point inside the production possibility frontier. This law would lead to an under-utilization of resources. This would lead to production taking place at a point inside the PPC

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised

8 0

3 years ago

You’re trying to save to buy a new $180,000 Ferrari. You have $29,000 today that can be invested at your bank. The bank pays 3.6

Fudgin [204]

Answer:

It will take 337.18 years before you have enough to buy the car.

Explanation:

This can be calculated using the future value (FV) formula as follows:

FV = PV * (1 + r)^n ...................... (1)

Where:

FV = future value or the price of Ferrari = $180,000

PV = present value or thee amount you have today = $29,000

r = annual interest rate = 3.6%, or 0.036

n = number of years = ?

Substituting the values into equation (1) and solve for n, we have:

$180,000 = $29,000 * (1 + 0.036)^n

$180,000 - $29,000 = 1.036^n

151,000 = 1.036^n

Loglinearizing, we have:

log151,000 = nlog1.036

5.17897694729317 = n * 0.0153597554092142

n = 5.17897694729317 / 0.0153597554092142

n = 337.18

Therefore, it will take 337.18 years before you have enough to buy the car.

3 0

3 years ago

In a SWOT Analysis, the primary objective of managers participating in this exercise is to:a. identify strategies that exploit e

Anettt [7]

Answer:

a. identify strategies that exploit external opportunities, counter threats, build on strengths, and eradicate weaknesses.

Explanation:

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.

It is used to assess an organization's competitive strength and to devise strategies accordingly.

Strengths relate to an organization's specialization which provides a competitive edge to it.

Weaknesses refer to shortcomings or limitations of an organization. Weaknesses could be inherent.

Opportunities refer to favorable situations available at the disposal of the organization which it must seize immediately.

Threats relate to dangers arising out of changes in the business environment.

The aim of SWOT analysis activity is to come up with those strategies which make the most out of available opportunities, overcome threats, further build up strengths and eliminate weaknesses.

6 0

3 years ago

Pierce Corporation exchanged old equipment for new equipment. The original cost of the old equipment was $120,000, and its accum

ololo11 [35]

Answer:

new equipment 50,000 debit

accumulated depreciation 40,000 debit

loss at disposal: 30,000 debit

old equipment 120,000 credit

--to record trade of equipment--

Explanation:

Let's break the transactions into small parts:

We need to remove the old equipment from accounting along with their accumulated depreciation so:

accumulated depreciation 40,000 debit

old equipment 120,000 credit

Then, we debit the new equipment at fair value:

new equipment 50,000 debit

Last, assuming the trade has commercial substance: we recognize the gain or loss on sale:

book value of traded equipment: 80,000

fair value of new equipment: 50,000

loss at disposal: 30,000

Thus, the journal entry will be as follows:

new equipment 50,000 debit

accumulated depreciation 40,000 debit

loss at disposal: 30,000 debit

old equipment 120,000 credit

4 0

3 years ago

On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On J

Nataly [62]

1. When is Ensor’s stock option measurement date?

Answer: The stock option measurement date is on January 1st, 2021

Explanation:

- The measurement date of the stock option is the day it is granted with information about:

+) number of share each individual staff receives

+) the price of the option

It was indicated in the question: "On January 1, 2021, 26 million stock options were granted"

=> The measurement date is January 1, 2021 with the amount of 26 millions stock options were granted.

2. Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.)

Answer: Compensation expense is $52 million

Explanation:

The fair value per stock option is 6$ per option.

=> Total compensation expense for 26 million options would be: 6 x 26 million = $156 million

As the options are exercisable between 01/01/2024 and 31/12/2016

=> The vesting period is 3 years from 01/01/2021 to 31/12/2023

=> The compensation expense for the stock option plan in 2021 is calculated as following:

Compensation expense year 2021 = Total compensation expense/ Vesting period = 156 million / 3 = $52 million

3. Prepare the journal entries to reflect the effect of forfeiture of the stock options on Ensor’s financial statements for 2022 and 2023.

Answer & Explanation:

2.6 million (10%) of the options were forfeited

=> The remaining percentage represent the unforfeited = 100% - 10% = 90%

In 2022

As 2022 is the second year of the vesting period:

The compensation expense of 2022 = (Total compensation expense * 90% * The order of period/ Number of period) - Compensation expense Year 2021

= $156 million × 90% × 2/3 - $52 million = $41.6 million

2022 Debit Credit

Compensation expense 41.6 million

Paid-in-capital-stock options 41.6 million

In 2023

As 2023 is the third year of the vesting period:

The compensation expense of 2023 = (Total compensation expense * 90% * The order of period/ Number of period) - Compensation expense Year 2021 - Compensation expense of 2022

= $156 million × 90% × 3/3 - $52 million - $41.6 million = $46.8 million

2023 Debit Credit

Compensation expense 46.8 million

Paid-in-capital-stock options 46.8 million

5. Prepare the journal entry to account for the exercise of the options in 2025.

Answer & explanation:

The number of shares exercised = 26 million - 2.6 million = 23.4 million

It is given that the stock options are exercisable between January 1, 2024, and December 31, 2026 at 80% of the quoted market price on January 1, 2021, which was $20.

The exercise price of the stock = $20 × 80% = $16

Cash = Amount paid for shares = Exercise price × Number of options exercise = 16 × 23.4 million = 374.4 million

The paid-in-capital Stock option = 23.4 million x 6 = 140.4 million

Common stock (23.4 million at $1 par per share) = 23.4 million

=> Pain in capital - excess of par = 491.4 million

Journal entry:

General Journal Debit Credit

Cash 374.4 million

Paid-in-capital - Stock option 140.4 million

Common stock 23.4 million

Paid in capital - excess of par 491.4 million

5 0

3 years ago

What are the advantages of being a member of World Trade Organization​

What are the advantages of being a member of World Trade Organization