Lower taxes, import export tariffs, laws of international business, exemption for shipping from different countries, labor cost differences, financial regulations.
Explanation:
Businesses use many loopholes and rule relaxations to drive up their profits. Lower taxes allow for more investors to find interest and lower import export tariffs make a place a good market.
<u>If the labor is cheap in a different countries the companies ship their product to their and make all the preliminaries for cheap then assemble in the parent country to get a certification.</u>
Companies also use international law loopholes to evade taxes and work around tariffs imposed.
Answer:
The gain of $8,000 is recognized and the bonds have a basis of $35,000
Explanation:
Please see attachment
Answer:
c.
Explanation:
Based on the scenario being described within the question it can be said that the statement that is not possible would be Kelly having a comparative advantage in repairing cars and in cooking meals. This is because a when having a comparative advantage you are better at something but at the same time you are giving up other opportunity costs. Therefore in this scenario Kelly can only have a comparative advantage at either repairing cars or cooking meals but not both.
Answer:
Lucky event
Explanation:
In the investments market a true measure of market efficiency is to get a track record of positive outcome from investors over time.
The lucky event problem occurs when an investor makes a profit on investment not because of how efficient a market is or by a logical procedure, but rather by chance.
In the given scenario Keyes put all his money in one stock that doubled in 3 months.
However this was not replicated among other investors who made similar vets on other stocks and lost.
This is an exams of lucky event problem in determining market efficiency.
