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hodyreva [135]
2 years ago
6

True or False: Japan generally runs a significant trade surplus because of low Japanese demand for foreign goods.

Business
1 answer:
mihalych1998 [28]2 years ago
4 0

Answer:

False

Explanation:

Among the various reasons, Japan is a high country saving rate relative to investment that cause a significant trade surplus. A higher saving rate generally corresponds to trade surplus. Japan socio-political and economical conditions reveals that people have a high propensity to save. Many reason like high life expectancy rate, underdeveloped social security and tax incentives for income from capital and frequent environmental hazards attributed to the high rate of saving in Japan.

With the high rate of savings relative to domestic investment, Japan invest more funds in other countries(net capital outflow increases). This is matched with high net exports leading to a trade surplus.

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If 25% of the common stock of an investee company is purchased long term investment the appropriate method of accounting for the
Lina20 [59]

Answer:

b. the equity method.

Explanation:

The equity method is used when the investor company will own approximately 20% to 50% of the common stock of the investee company. This method is used because the investor company will have significant influence over the actions taken by the investee company. The investee company will generally be considered an affiliate company, but not a subsidiary.

8 0
2 years ago
Rufus Inc. and Hardy Company are negotiating a nontaxable exchange of business properties. Rufus’s property has a $50,000 tax ba
Norma-Jean [14]

Answer:

Which party to the exchange must pay boot to make the exchange work?

  • Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.

How much boot must be paid?

  • $90,000 - $77,500 = $12,500

Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?

  • Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500

Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?

  • Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.
8 0
3 years ago
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situation
Arlecino [84]

Answer:

1. a) War increases demand for loanable funds, demand curve shifts RIGHT. (Increase in real interest rate)

b) Private investors are optimistic about the economy (i.e. investment opportunities). Demand for loanable funds increases, demand curve shifts RIGHT. (Increase in real interest rate)

c) Tax increase means a decrease in the supply about loanable funds. Supply curve shifts LEFT. (Increase in real interest rate)

2. would most likely increase the supply of loanable funds. If Americans are saving more, then they are spending less money and investing more of it. Remember--saving does not mean "not using it". It means investing it instead of consuming.

3. The interest rate will fall. There is a surplus of loanable funds and the real interest rate will reflect this surplus by falling.

4. decrease in the demand for loanable funds. When output decreases, the return on investment for new projects decreases and investors are less in need of money to fund their ventures.

5. decrease the supply for loanable funds. If they are consuming more, they are saving less.

6. Increase / Decrease. When interest rates increase, growth is reduced because funding economic ventures is now more costly. Sometimes the fed will increase interest rates when it anticipates inflation to increase in order to mitigate economic growth.

Hope this was helpful!

Explanation:

5 0
3 years ago
Assume the nation of Teeveeland does not trade with the rest of the world. By comparing the world price of televisions to the pr
tino4ka555 [31]

Answer:

A) Teeveeland has a comparative advantage in producing televisions.

Explanation:

If Teeveeland has a comparative advantage in producing televisions, then the price of televisions in Teeveeland should be cheaper than the world price. The world price is the average price of a good traded in international markets, in this case televisions.

International trade is based on comparative advantages, since countries export the goods that is can produce more efficiently (they have a comparative advantage in their production) and they trade for goods that they cannot produce efficiently. So if Teeveeland has a comparative advantage in producing televisions, it should start to sell them to the rest of the world.

5 0
3 years ago
A major distinction between a conventional bank and an Islamic bank is that Islamic banks Group of answer choices are supposed t
yuradex [85]

Answer:

cannot pay or charge interest

Explanation:

Islamic banks do not charge interest. The banks are based on Sharia law. Islamic banks make a profit through equity participation.

I hope my answer helps you

5 0
3 years ago
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