<u>Answer:</u>
Difference between money paid to and money received from other nations in trade is called balance of trade is a <u>TRUE</u> statement.
<u>Explanation:</u>
The difference between the export and the import done by the country is usually termed as the balance of trade. Even though the sum of payments and receipts is necessarily equal, in different types of transactions there will be disparities — excesses of transactions and receipts, named deficits and surpluses.
Trade balance does not include any goods (not even product import and export). For example, China, a nation where many of the globe's consumer goods are manufactured and exported, has registered a trade surplus since 1995. Because of its dependence on oil imports and consumer goods, the United States has shown a trade deficit since 1976.
Answer:
Consider the following explanation
Explanation:
Context
Game theory involves two players. They have more than one option to decide. Pay off from each options adopted by two players are available. They have to select a strategy which will maximize their own return. But for optimizing their decision, they have to consider the action of his rival.
In this problem, two players are firm A and firm B. They have two strategies low output and high output. The strategies of firm a are measured in rows and for firm B in columns. They have to select a strategy which will maximize their payy off. Each cell has two pay offs. First one is for Firm A and second one is for firm B.
1. Dominant strategy is a strategy which will always give higher payoffs in comparison with pay off of other strategies. Consider first strategy of firm 1. If it adopts strategy of low output, then firm 2 can also adopt either strategy of low output or high output. In that case pay off of firm 1 will be 300 or 200.
Alteratively if firm 1 adopts high output then pay offs are 200 or 75. 200 is earned if firm B also go for low productivity. It is 75 if firm B adopts high productivity.
Now compare two payoffs side by side. Note that firm A has higher pay off in low output [300,200] in comparison with the pay off of high output [200,75]. So whatever strategy firm B adopts, Firm A will always go for low production. So low production strategy of firm A dominates high production strategy.
Same result is not observed for firm B. Pay off from low production strategy of firm B is [ 250,75]. Pay off from high production strategy are [100,100]. Now compare the two. If Firm A go for low production, then firm B will select low production. It will give pay off 250. Similarly when firm A decides for high production, then firm will also decide for high production. It will maximize its pay off. Amount is 100. Thus no strategy dominates for firm B.
Explanation:
An organization with a strong ethical compliance program is much more valued by its stakeholders, because the globalized world and new communication technologies have brought companies closer to consumers, which has generated a much greater relationship than just based on consumption, today people are informed beforehand about the history of companies, their values and ethical and responsible conduct, looking for companies that add something positive in society besides just profitability.
Therefore, having a positive image on the market helps organizations increase their value to consumers and investors, which creates relationship marketing based on trust and identification. For companies to maintain standards based on ethics generates significant advantages such as being more competitive, attracting more customers, having a positive organizational climate, being better positioned in the market, etc.
Answer: a. The black-scholes call price for 1 year is 0.
For 10 years it is also 0.
Option price did not change.
b. When δ is 0.001, the black-scholes call price for 1 year is 450.012.
For 10 years it is 450.0012.
The option price changed from 450.012 to 450.0012.
The difference was due to the change of δ value from 0 to 0.001.
Explanation: using the black-scholes equation below option price is callculated based on the given values.
δk/δt+1/2σsquare×Ssquare×δsquare×k/δS+rS×δk/δS-rk=0
By calculations the options prices were obtained for the first value of δ=0 both for 1 year and 10 years and compared with when the value of δ was changed to 0.001
A change in option price was also observed as the δ values changed this lead to the difference observed.
