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2 years ago

How does specialization affect international trade

Business

1 answer:

frozen [14]2 years ago

3 0

Answer:

Countries become better at making the product they specialize in. Consumer benefits: Specialization means that the opportunity cost of production is lower, which means that globally more goods are produced and prices are lower. Consumers benefit from these lower prices and greater quantity of goods.

Explanation:

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When the price of wood (which is an input in the production of furniture) falls, the consumer surplus associated with the consum

Novosadov [1.4K]

The consumer surplus associated with the consumption of furniture increases. Wood is an input in the production of furniture therefore it constitutes the cost of production, the decrease in the price of wood would therefore mean a decrease in the production cost. A decrease in the cost of production in turn causes a decrease in the buying price of furniture and therefore, consumer surplus increases.

8 0

3 years ago

In the context of the vertical structure of a firm, a wide span of control builds a _____ organization with few reporting levels

Natali5045456 [20]

Answer:

flat

Explanation:

In a vertical structure of organization, there is a pyramidal top-down structure

whereby there would be be owner at top i.e CEO, a manager at middle section as well as supervisor and employees at the bottom section.

It should be noted that In the context of the vertical structure of a firm, a wide span of control builds a flat organization with few reporting levels.

3 0

3 years ago

Wildhorse Construction Company had a contract starting April 2021, to construct a $24900000 building that is expected to be comp

jek_recluse [69]

Answer:

The construction in process amount reported at December 2021 is $13,695,000

Explanation:

In this question, we are asked to state the amount the company will report construction in the process of.

Firstly, we calculate the profit = Total contract price - Expected costs of contract = $24,900,000-$22,900,000 = $2,000,000

The profit in percentage of cost is; 2,000,000/22,900,000 = 8.73%

The costs incurred in 2021 is $12,595,000

The proportionate profit = 12,595,000 * 8.73 = $1,100,000

The construction in process at December 2021 = Cost incurred + Proportionate profit = 12,595,000 + 1,100,000 = $13,695,000

3 0

3 years ago

Inadequate disclosure occurs when: a. A company attempts to overstate assets to make their financial position look better. b. Ma

Fudgin [204]

Answer: Option B

Explanation: In simple words, inadequate disclosures refers to the situation when a company fails to make accurate or enough discloses in a statement as required by various laws and regulations.

The disclosure can be done through any medium such as media or in the yearly statement but if it does not contain proper information that it will be considered as an offence and suitable actions could be taken.

7 0

3 years ago

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years

Harlamova29_29 [7]

Answer:

3 1/3 years

Explanation:

Payback period is the time required for the inflows from a project to be equal to the initial outflow for the project. It is a key consideration in capital budgeting. It is usually assumed that the outlay or initial outflow is made in year 0 and the first inflow comes in after a year.

Year Cash outflow Cash inflow Balance

0 ($50,000) - ($50,000)

1 - $15,000 ($35,000)

2 - $15,000 ($20,000)

3 - $15,000 ($5,000)

4 - $15,000 $10,000

5 - $15,000 $25,000

Hence the payback period

= 3 years and 5000/15000 * 12 months

= 3 years 4 months

= 3 1/3 years

3 0

3 years ago