Answer: Dr. Bostwick was able to provide medical services that did not satisfy his own wants, so he exchanged those services for money that he used to buy things that did. Professor Boudreaux had money but desperately wanted a pediatric gastroenterologist to treat his son.
Explanation:
Trade generates value by transferring goods or services from those who value them less to the people who need them more. The only way people can decide to specialize in the making of a single good or service is because they already know they can trade it for other goods they do need.
In the video 'How the Division of Knowledge Saved My Son's Life', Professor Boudreaux explains that it was thanks to Dr. Bostwick specialization on pediatric gastroenterology that his son´s life was saved.
Capitalism, most businesses have a profit motive. Describe at least one reason that businesses with a profit motive may be helpful for society and at least one reason that they may be harmful for society
Answer:
This question is about Corporate Social Responsibility (CSR), which is basically being socially responsible (with the employees, community, environment, etc.) and at the same time trying to maximize the financial value of a company (which is a duty to shareholders).
It might be easier for some companies, e.g. service providers, while much harder for mining companies (and other extracting companies). But it doesn't meant that all companies should try their best to do it.
Some companies even benefit from being socially responsible and increase their income through higher sales, e.g. Ben and Jerry's actually increased their sales of ice cream by focusing on CSR.
Even small businesses can benefit from CSR since it increases customer awareness and loyalty, and that can lead to higher sales. E.g. the public image of local businesses that help to finance certain community services improves and that eventually leads to higher sales.
Customers tend to favor companies that they consider to be socially responsible, and if they have to decide between purchasing from a socially responsible company or from another that isn't, they will generally purchase form the socially responsible one.
Answer:
(D) - It engages in Foreign Direct Investment, which by itself raises US net capital outflow
Explanation:
Foreign Direct Investments (FDIs) are investments in physical assets, infrastructures, etc and other long-term assets made in a foreign country. They differ from Foreign Portfolio Investments (FPIs) which are investments in stocks, bonds, treasury securities and other listed securities which can be sold easily in financial markets. For instance, when a US-based corporation invests in the stocks or bonds of a French company, this is FPI. Whereas, when the US-based corporation establishes a company in France by investing as plants and machinery, this is FDI.
FDIs requires cash commitment for investing in the foreign nation. However, because the assets created as a result of these investments are owned by the originating country, it increases the volume of assets the country has abroad leading to an increase in net capital outflow. Net Capital Outflow is the volume of capital investment made by a nation in other countries, less the capital investment made by other countries into the nation.
Therefore, when Stryker builds and operate a new factory in France, it engages in Foreign Direct Investment. By itself this action raises US net capital outflow.
Answer:
Selling price= $30
Explanation:
Giving the following information:
Unitary cost:
Variable= $30
Fixed= $16
Number of units= 4,100
<u>Normally, when there is unused capacity and a new customer asks for a reduced price, the fixed cost should not be taken into account when calculating the selling price. </u>The company benefits from increasing its sales, acquiring a new customer, and perhaps getting some discounts from suppliers in the variable components.
<u>The lower price that the company accepts is the one that equals the unitary variable cost. In this case:</u>
Selling price= $30
