The choice of country a to purchase wheat from country b is supported by Ricardo's theory of comparative advantage, which is the theory of international commerce.
<h3>What is the trade theory of Ricardo?</h3>
Three premises underlie the Ricardian theory of international trade: labor productivities are fixed, there is no cross-border movement of the production factors, and labor is the only production factor. Only the first of these presumptions is acknowledged by Ricardo himself.
According to Ricardo's well-known theory of comparative advantage, countries can gain a competitive advantage in international trade by focusing on producing goods with the lowest opportunity costs compared to those of other countries.
<h3>What can we infer about the advantages of free trade from Ricardo's theory of comparative advantage?</h3>
The foundation of international trade is comparative advantage, which also serves as the basis for the positive economic effects of free trade on nations. According to the comparative advantage concept, trade can still be advantageous to both trading partners even when one country has a clear advantage in producing goods.
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Answer:
Have we inventoried the third party relationships that exist in our organization today?
How are we identifying and tracking new or changing relationships?
Have we assessed and prioritized the risks related to those relationships?
When evaluating new relationships, do our selection criteria address risks to the organization?
Where applicable, do our agreements and contracts include adequate terms and conditions to require third-parties to provide independent assurance to mitigate potential risks, convey trust and confidence, and demonstrate compliance with laws and regulations?
Are responsibilities to manage these risks clearly defined individually for each third-party and as a whole?
Are we monitoring the various risks and contract requirements associated with each existing relationship and at what interval?
Are these relationships dependent on subservice organizations?
How do we gain comfort that information provided by third-parties is valid, accurate, and complete?
Does our risk assessment process identify potential negative events resulting from third party relationships and include procedures in place to respond?
Answer: a person who organizes and operates a business or businesses taking on greater than normal financial risk to do so
Answer:
d. The stock price is expected to be $54 a share one year from now.
Explanation:
Using dividend discount model(DDM), find next year's dividend;
P0 = D1/ (r-g)
50 = D1/(0.14-0.08)
50 = D1/ 0.06
Multiply both sides by 0.06 to solve for D1;
50 *0.06 = D1
3 = D1
Next, year's dividend is $3
Dividend yield = D1/P0;
= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.
Next year's price; P1 = P0(1+g)
P1 = 50(1.08) = $54 hence choice D is correct
Answer:
The resources are allocated by the combined actions of the firms and the households and the central planning authority like the government.
Explanation:
Market economy is the economy where the demand and the supply laws direct the production of the services and goods. The supply involve the labor, natural resources and capital. Demand comprise of purchases by the consumers and the government.
In the market economy, the resources are allocated by the decisions of the firms and the households who are interacting in markets. It is an economy where the most economic decisions are the consequence from the interaction of the sellers and the buyers in the market but the government also plays a very vital role while allocation of resources are done.
