Theory of comparative advantage
Specify the considerations that could bound extent to which theory of the comparative advantage is practical?
Expert
Theory of comparative advantage was initially developed by David Ricardo, the nineteenth century economist, as explanations for why nations trade with each other. This theory state that economic health is improved in case, citizens of each country generates what they have a comparative benefit in manufacturing comparative to the citizens of another countries, and then trade the products. As per the theory, assumptions of free trade among the nations and that the factors of production (land, labour, buildings, technology, and capital) are comparatively immobile. To the extent which these assumptions don’t hold, theory of relative advantage won’t realistically express the international trade.
How APV capital budgeting framework is useful for analyzing the foreign capital expenditures?
State some of financial and operational measures MNC can take minimize the political risk linked with the foreign investment project?
What do you mean by Evaluated Receipt Settlement?
Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate
Write down disadvantages and advantages of maintaining the multiple manufacturing sites as the hedge against exchange rate exposure.
Presently, spot exchange rate is $1.50/£ and three-month forward exchange rate is $1.52/£. Three-month interest rate is 8.0% per annum within the U.S. and 5.8% per annum within the U.K. Suppose that you can borrow as much as $1,500,000 or £1,000,000.
How to evaluate the cost of intangible asset?
On December 31, 20x3, the PPE Company purchased an asset costing $1,000,000. The asset’s useful life is expected to be 10 years with a residual value of $300,000. a. Calculate the depreciation expense for 20x4 using:
What is Treasury bills? What did they do?
Explain the term Fixed Assets and what are their advantages in production or business aims?
18,76,764
1930379 Asked
3,689
Active Tutors
1434071
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!