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3 years ago

How does comparative advantage affect trade between countries

Business

1 answer:

Deffense [45]3 years ago

3 0

Answer:

Explanation:

Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners.

The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.

Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in.

Absolute advantage refers to the uncontested superiority of a country to produce a particular good better.

Hope this helped!!

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ABC Inc needs to raise $111 million to expand operations. The CFO plans to sell 15-year zero-coupon bonds to fund the project. B

oee [108]

Answer:

$207.06 million

Explanation:

First and foremost, it should be borne in mind that the price of a zero-coupon bond is the present value of its face value since the bond does not pay any coupons over its tenor as shown thus:

PV of bonds=FV/(1+i)^n

PV of bonds=amount required=$111 million

FV=face value=the unknown

i=semiannual yield = 4.2%/2=2.1%

n=number of semiannual periods in 15 years=15*2=30

$111=FV/(1+2.1%)^30

FV=$111*(1+2.1%)^30

FV=$207.06 million

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3 years ago

The cost to society for underage alcohol use is more than $ ___________ per year for every man, woman and child in the United St

Fittoniya [83]

The answer is c +-)$$$$

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3 years ago

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Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable

labwork [276]

Answer:

description of the land

Explanation:

According to my research, many states need for a land sale contract to include a description of the land in order to be able to make the contract enforceable. This is just like when you buy a car, you would like to have photos of the car for the sale. Description as well as photos provide a better understanding of what is being sold.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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3 years ago

Presented below are three transactions. Mark each transaction as affecting owner's investment (I), owner's drawings (D), revenue

emmasim [6.3K]

Answer:

a. revenue (R), affecting owner's investment (I)

b. not affecting owner's equity (NOE)

c. expense (E) and affecting owner's investment (I)

Explanation:

Revenues and Expense form Profits which are included in the statement of changes in equity through the Retained Income line item, thus these two also affect owners investment.

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3 years ago

Henderson industries has $500 million of common equity on its balance sheet; its stock price is $60 per share; and its market va

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<u>Calculation of number of common shares currently outstanding:</u>

It is given that Henderson industries has $500 million of common equity on its balance sheet; its stock price is $60 per share; and its market value added (mva) is $130 million.

We can use MVA formula to calculate the number of common shares currently outstanding as follows:

MVA = (Total Shares Outstanding × Current Market Price) − Total Common Equity

130,000,000 = (Total Shares Outstanding x 60)-500,000,000

(Total Shares Outstanding x 60)= 130,000,000 + 500,000,000

Total Shares Outstanding x 60= 630,000,000

Hence,

Total Shares Outstanding = 630,000,000 /60 = 10,500,000

Hence, the number of common shares currently outstanding are <u>10,500,000 shares</u>.

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4 years ago