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3 years ago

Discuss how AFCFTA could be trade creating free trade area?

Business

1 answer:

allochka39001 [22]3 years ago

6 0

Explanation:

eliminate tariffs on intra-Africa trade, making it easier for businesses to trade within Africa and benefit from their own growing market; introduce regulatory measures such as sanitary standards and eliminating non-tariff barriers to trade; establish, in the future, a Common Continental Market.

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Jurisdiction E spends approximately $7 million each winter on snow removal. The jurisdiction is considering adding a new income

frez [133]

Answer:

'Taxes' can be defined as a compulsory contribution to the state's or country's revenues, which are levied by the governments on personal incomes of individuals or profits of the corporate, or on some transactions.

Taxes are the main source of revenues for any government, through which it receives the necessary funds to spend on various activities it undertakes for public welfare and maintaining the law and order and security of the nation.

Many theorists believe that every tax should be evaluated on certain standards and the following four standards have been mentioned for evaluating whether taxes are good or not:

Taxes should be sufficient to fulfill the government's requirements
Taxes should be convenient for the government to implement and for the citizens to pay
Taxes should be efficient economically
Taxes should be fair

There may be certain provisions introduced in the federal tax system, which are targeted to induce certain behaviors or shift people's attention towards certain activities. These provisions are called tax preferences

Does this proposed change in Jurisdiction E's tax law meet the definition of a tax preference? Explain briefly.

In the given question, the decision of the jurisdiction to give deduction to the people for the snow removal equipment they purchase, is definitely a tax preference as it induces people to invest in snow removing machines, as they are getting full deduction of such expense in income taxes.

By having this provision, the government is motivating people to invest in these machines, and people also have the benefit of having such machine with them, and also getting tax deduction for such expense, so getting such machine almost free (this applies to people who have incomes in such tax bracket only). Thus it is the way of government in encouraging people to buy snow removing machines and reduce the burden on the government. Thus it is clearly a tax preference.

Jurisdiction E forecasts that the proposed change will decrease its annual tax revenues by $250,000 but will improve the jurisdiction's financial condition by $300,000. On what assumptions is this forecast based?

The forecast regarding decrease in annual tax and improvement in financial condition is based on the assumptions of people taking benefit of such a provision, and actually investing in snow removing machines.

The jurisdiction believes that people will purchase the machines and make claims for deductions, effecting the tax revenue by $250,000. But at the same time, as many people will themselves remove the snow, the government doesn't have to spend so much on snow removal and thus make the savings of $300,000

6 0

3 years ago

Morgan Pharmaceutical spends $50,000 this year in research and development for a new drug to cure liver damage. By the end of th

kenny6666 [7]

Answer:

The impact of spending $50,000 on the research and development for a new drug to to cure liver damage will increase the expenses of the Morgan Pharmaceutical in the years financial statements.

Explanation:

Morgan pharmaceutical is pending $50,000 on he research and development of new drug which can cure the liver damage, from this spending company is expecting that after they have successfully created new drug it will lead to the increase in sales , which will ultimately lead to increase in profits , which then would totally recover the initial cost incurred on research and development but until then these expenses would be shown in the current years financial statement as expenses, and thus would increase the total expenses of the company.

3 0

3 years ago

The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investmen

ICE Princess25 [194]

Answer:

The new equilibrium combination will be at increases I1 to I2, S1 to S2, and r1 to r2.

Explanation:

Saving or national saving of an economy is amount of national income or gross domestic product (GPD) that is not spent by the government. Using a simple example of a closed economy, i.e. an economy with no foreign trade in terms and imports, this statement can be mathematically as follows:

Y = C + I + G .......................................... (1)

Where,

Y denotes national income (GDP), C denotes consumption, I denotes Investment, and G denotes government spending.

To get investment, equation (1) can be rewritten by making I the subject of the formula as follows:

I = Y - C - G ......................................... (2)

In economics, saving (S) is always equal to investment (I). Therefore, equation (2) can be rewritten by equating it with I as follows:

I = Y - C - G = S

I = S

Both I and S can be written as initial saving (S1) and initial Investment (I1), and we therefore have

I1 = S1 ................................................................. (3)

Equation (3) is an equilibrium E which implies that Investment (I1) is equal to saving (S1) at the initial real interest rate (r1). Real interest here denotes the price for saving and investment.

Since saving of an economy is amount of national income or GDP that is not spent by the government, a cuts in the government spending will cause saving to rise, i..e. to S2. Since saving and Investment is always equal to investment, Investment will also rise, i.e. to S2. Increase in I1 to I2 and also in S1 to S2, will cause the real interest rate to rise to r2 at E2 which is the new equilibrium combination of real interest rate, saving, and investment

Therefore, the new equilibrium combination of real interest rate, saving, and investment if the government cuts spending, holding other factors constant, will be at increases in I1 to I2, S1 to S2, and r1 to r2.

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3 years ago

GDP per capita does NOT show _____, such as _____.

Fudgin [204]

Unpaid work and volunteer work

3 0

3 years ago

Read 2 more answers

For the united states, one important benefit of foreign trade is

dolphi86 [110]

Share holder in stock market . investment money multi national company

6 0