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Allisa [31]
3 years ago
13

How can exchange rates change to reduce the wage differential between countries​

Business
1 answer:
andrey2020 [161]3 years ago
4 0

Answer:

The exchange rate is the value for which one currency can be exchanged for another. Thus, for example, 20 Mexican pesos are needed to acquire an American dollar.

Technically, it could happen that a country changes its exchange rate with respect to a hard currency (such as the Dollar or the Euro) through fixed exchange rates, in order to increase the value of the salaries of its citizens, measured in international currencies. For example, if the Mexican government fixed a parity between the dollar and the peso of value 1 to 1, the minimum wage of Mexicans would go from being worth $ 215 to multiplying by 20, that is, to $ 4,300.

Now, in practice, this situation is practically impossible, since it would imply a monetary modification in the country that makes the adjustment, since otherwise it would imply an unprecedented inflationary peak.

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Stock prices start to rise:
LenaWriter [7]

Answer:

b.when the unemployment rate begins to decline following a recession.

Explanation:

In a recession there is usually a general decline in economic activities and a resultant decrease in spending. When recession occurs people will have less money to spend on buying stock so prices will fall s a result of reduced demand.

If however the economy is coming out of recession, economic activities are picking up, and unemployment begins to decline. This will lead to greater economic wealth, people will have more money to spend and demand for shares will rise. This will in turn lead to rise in price of shares.

5 0
4 years ago
In economics, capital refers to a. the finances necessary for firms to produce their products. b. buildings and machines used in
PtichkaEL [24]

Answer:

b. buildings and machines used in the production process

Explanation:

In economics, capital is one of the four factors of production.  It refers to the assets used in the production of other goods and services. These assets include buildings, plants, and machinery used in manufacturing, and are not part of the output. Capital includes financial assets needed in facilitating the production process.

In finance and accounting, capital will refer to money or cash equivalents. In economics, capital is not limited to finances only. It includes all the assets used to create wealth.  Minerals, equipment, and intangible assets such as copyrights and patents are considered as capital.

3 0
3 years ago
In May of 2021, Raymond Financial Services became involved in a penalty dispute with the EPA. At December 31, 2021, the environm
Natasha2012 [34]

Answer:

$882,000

Explanation:

According to IAS 37, Provisions, contingent liability and contingent assets,  A provision is a liability of uncertain timing or amount. The liability may be a legal obligation or a constructive obligation.

An entity recognises a provision if it is probable that an outflow of cash or other economic resources will be required to settle the provision. Furthermore, the standard requires that a provision is measured at the amount that the entity would rationally pay to settle the obligation at the end of the reporting period or to transfer it to a third party at that time.

The amount to be accrued for is the settlement offer of $882,000 which was accepted before the financial statement was issued. This settles the uncertainty in the amount to be provided for.

4 0
3 years ago
What is NOT a type of statistical analysis approach for data analysis?
Lana71 [14]

Answer:

co-relationship

Explanation:

co-relationship  is not a type of statistical analysis approach for data analysis.

Types of statistical analysis approach for data analysis include;

Regression Analysis

Causal Analysis

Exploratory Analysis

In statistics we have correlation, which measures the degree of association between two quantitative variables.

5 0
3 years ago
You've graduated from college and are now working in an investment firm where you advise clients on investment decisions. Here i
8_murik_8 [283]

Answer:

B. $85,000

Explanation:

The client should not invest in the project as the income stream is low and the NPV of the project will be negative. The client should not invest in a project whose net present value is negative which means its total cost is greater than the total revenue that will be generated from the project.

6 0
3 years ago
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