If the price level in Japan is 1.0, the price level in the US is 2.0, and it costs 100 yen to buy one dollar, then the real exchange rate between the US and Japan is 200.
Which of the accompanying all else consistent will cause the genuine conversion standard to diminish?
Homegrown expansion happens, then the proportion between unfamiliar cost and the homegrown cost will decline, thus the genuine conversion scale will diminish.
Which of the accompanying best characterizes the genuine conversion standard?
On the other hand, the genuine conversion standard R is characterized as the proportion of the cost level abroad and the homegrown cost level, where the unfamiliar cost level is changed over into homegrown cash units by means of the ongoing ostensible swapping scale.
How does unfamiliar loan fee influence homegrown result?
Changes in the loan fee influence the economy straightforwardly through speculation, and in a roundabout way through the swapping scale. An expansion in the loan fee lessens yield both straightforwardly and in a roundabout way (through the swapping scale).
What causes genuine swapping scale decline?
The abundance interest for unfamiliar cash brings down the nation's conversion scale until homegrown labour and products are modest enough for outsiders, and unfamiliar resources are excessively costly to create deals for homegrown interests.
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the abc corporation is a profit-maximizing firm producing gadgets. abc operates in a perfectly competitive goods, or product, market. abc has a fixed number of laborers and rents a machine for a variable number of hours in a perfectly competitive factor market. a) draw side by side graphs of the factor market for machines and the abc corporation. all parts of the graphs should be labeled correctly. be sure to show: the equilibrium rental price of machines is the factor market, labeled as pm abc's equilibrium rental quantity of machines, labeled qf b) due to a rise in consumer income, the demand for gadgets increases. what will happen to each of the following? marginal product curve for machine-hours marginal revenue product curve for machine hours. explain. c) abc is employing the cost-minimizing combination of inputs. the marginal product of labor is 50 gadgets per hour and the wage rate is $10 per hour. the marginal product of the machine is 160 gadgets per machine-hour. what is the hourly rental price of a machine?
The marginal manufactured from an input, say labor, is described as the extra output that outcomes from including one unit of the input to the present mixture of effective factors.
Marginal product is the exchange in output due to one extra unit of entry. it's far calculated by taking the exchange in output (products produced, for instance) divided by the change in input (employees, for an instance).
The value of a Marginal Product is a calculation derived by way of multiplying the marginal bodily product through the common revenue or the fee of the product. extra, in reality, the components for calculating VMP are physical Product x income rate of the Product.
Overall product is really the output this is produced by way of all the hired employees. Marginal product is the additional output this is generated by means of an additional employee. With a 2nd worker, production will increase with the aid of five, and with the 0.33 employee, it will increase with the aid of 6.
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T/F he data that you collect suggest that the between-treatments variance is small, relative to the within-treatment variance, so the f-ratio for your study is likely to be , suggesting that .
True data that you collect suggest that the between-treatments variance is small, relative to the within-treatment variance, so the f-ratio for your study is likely to be, close to 1.00 suggesting that will not be rejected.
The Student's t check is used to evaluate the way among groups, while ANOVA is used to evaluate the way amongst 3 or greater groups. In ANOVA, first receives a not unusualplace P price. A widespread P price of the ANOVA check suggests for at the least one pair, among which the imply distinction become statistically widespread. Thus, the among-remedies variance simply measures how plenty distinction exists among the di i remedy conditions. the variations were as a result of the remedy effects.
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satchel loses his job and immediately begins looking for another. other things the same, the unemployment rate
The number of persons who are eager, able, and actively looking for work but haven't found any is referred to as unemployment. The percentage of people who are working or actively looking for employment in an economy is known as the labor force participation rate. The fact that Satchel is still looking for employment implies that he is now unemployed even though he lost his job. Satchel did not retire or get demotivated and give up on working in the future. Before he can find another job, this raises the unemployment rate.
Who defines "unemployment"?When someone who is actively looking for work is unable to find employment, they are said to be unemployed. The rate of unemployment is frequently used to gauge the state of the economy.
What is the rate of unemployment?The number of jobless persons as a percentage of the labor force, according to the OECD, Eurostat, and the US Bureau of Labor Statistics, is what is known as the unemployment rate.
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Satchel loses his job and starts hunting for a new one right away. The labor force participation rate remains unchanged, and the unemployment rate rises.
What connection exists between the labor force and the unemployment rate?The percentage of workers in the labor force who do not currently have a job but are actively seeking one is measured by the unemployment rate. This statistic excludes people who have not sought for job in the last four weeks. There are numerous factors that originate from both the supply side, or the worker, and the demand side, or the employer, that contribute to unemployment. High interest rates, the world economy being in a recession, and the financial crisis might all affect demand. Frictional unemployment and structural employment are major supply-side contributors.
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According to the video "supply chain reaction," what is "the bottom dollar of the supply chain"?
(a) Tin mines in Indonesia
(b) Tin mining in Britain
(c) Tin mining in Bolivia
(d) Tin mining in Nigeria
According to the video "Supply Chain Reaction", the bottom dollar of the supply chain is the tin mines in Indonesia. The Option A is correct.
What is a supply chain?A supply chain refers to the network of individuals and companies who are involved in creating product and delivering them to the consumer. The links on the supply chain begin with the producers of the raw materials and end when the van delivers the finished product to the end user.
In essence, the supply chain begins its operation when a business receives an order from a customer. Its essential functions then include product development, marketing, operations, distribution networks, finance, and customer service.
The management of supply chain is a crucial process because an optimized supply chain does results in lower costs and a more efficient production cycle. Therefore, most companies seek to improve their supply chains so they can reduce their costs and remain competitive.
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In the long run, a firm in a perfectly competitive market earns zero economic profit, so the opportunity in the short run to enjoy positive economic profits will cause existing firms to increase output and new firms to enter the market. 1st attempt See Hint the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn stay in enter exit the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn down | up to stay the same until the remaining firms earn a small negative economic profit zero economic profit positive economic 25/26 profit
Given the short-term positive economic profit, new businesses should enter the market over time, increasing the size of the market.
What transpires over time in a market that is intensely competitive?In a perfectly competitive market, businesses can only make or lose money in the short term. Because an infinite number of enterprises generate uniform, infinitely divisible things, profits and losses are ultimately eliminated.
Is there ever no economic profit in the long run?Economic gains spur entry, economic losses cause exit, and in the long run, firms in a perfectly competitive industry will generate no economic gains.
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regling company provides its employees vacation benefits and a defined benefit pension plan. employees earned vacation pay of $40,000 for the period. the pension formula calculated a pension cost of $222,750. only $185,000 was contributed to the pension plan administrator. question content area (a) provide the journal entry for the vacation pay. if an amount box does not require an entry, leave it blank. blank - select - - select - - select - - select - question content area (b) provide the journal entry for the pension benefit. if an amount box does not require an entry, leave it blank. blank - select - - select - - select - - select - - select - - select -
The journal entry for the vacation pay includes:
Dr Vacation pay expenses $40,000Cr Vacation pay payable $40,000The journal entry for the pension benefit includes:
Dr Pension expenses $222,750Cr Cash $185,000Cr Unfunded pension liability $37,750What is the journal entry for the vacation pay?Date Account titles Debit Credit
Vacation pay expenses $40,000
Vacation pay payable $40,000
What is the journal entry for the pension benefit?Date Account titles Debit Credit
Pension expenses $222,750
Cash $185,00
Unfunded pension liability $37,750
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In a mean chart for manufacturing process, several points are found to be outside the control limits. Does this mean that the process is incapable? Explain briefly why or why not, or what else should be done to find out?
Whereas, any control chart is prepared using upper control limit or UCL and lower control limit or LCL, again, such UCL and LCL values are calculated statistically or using a statistical formula.
We build a control chart of the mean or any condition to understand the variations of data within the process. Any data falling outside UCL and LCL values means processes are not in statistical control and we have found assignable causes, such kinds of causes could include large breakdown of machines, and any absenteeism of employees, with such causes we could see strong variations in the data.
Hence, points are found to be outside the control limits that doesn’t mean the process is incapable, as use could lie after the UCL line, so, any point could lie after the UCL line but before usl line, hence, we could conclude still process is capable to produce desire outputs, however, we should control variations in the processes first before considering process capability check.
When we could see variations of data in the mean control chart, we will look for root causes to fix the problem and keep the process under statistical control.
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Which of the following statements is true about strategic leadership?
a. It is the primary responsibility of the functional managers of an organization.
b. It does not take into account the task of maximizing shareholder value.
c. It is involved with taking decisions regarding how to create a competitive advantage.
d. It is a concept that does not apply to multidivisional companies that have several business units.
e. It is essentially about supervising workers at a manufacturing unit of an organization
It is involved with taking decisions regarding how to create a competitive advantage is true about leadership.
Which definition of leadership is accurate?"The process of exercising control over a team or organization." Leadership is described in that manner by the Oxford Dictionary. Leadership, put simply, is about taking chances and questioning the status quo. Leaders inspire followers to take new and improved actions.
Why does leadership matter?Because it inspires, motivates, and sets an example for others, leadership is crucial in achieving positive changes in the world. Leaders create a vision, offer a strategy, and cultivate trusting relationships with their followers. As a result, they lead groups of people to collaborate on amazing feats.
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Select the technological innovations that companies can use to develop products and services that match consumers' wants and needs more effectively
a. Social networking
b. Data bases
c. Blogs
All of the mentioned options are the technological innovations that companies can use to develop products and services that match consumers' wants and needs more effectively.
What do databases do?A database is a collection of data organized for quick access, management, and update. In computer databases, information such as sales transactions, customer information, financial data, and product information are often stored as collections of data records or files.
What function does a database serve?A database is often created to make it simple to store and access data. Any business or organization needs a reliable database. This is because the database contains all the necessary information about the business, including personnel records, transactional records, salary information, etc.
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Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 0.70. Based on the CAPM approach, what is the cost of equity from retained earnings? a. 9.25%
b. 7.78%
c. 7.08%
d. 7.00%
e. 8.47%
The cost of equity from retained earnings when using the CAPM approach for Scanlon Inc., would be 7 . 80%
How to find the cost of equity ?The CAPM method stands for the Capital Asset Pricing Method and it allows for the cost of equity to be calculated by using the beta, the real risk free rate, and the market risk premum.
The cost of equity when using the CAPM method can be found by the formula:
Cost of equity = Real risk free rate + Beta x Market premium
The real risk free rate = 4 . 10 %
Beta = 0 . 70
Market risk premium = 5 . 25 %
The cost of equity is therefore:
Cost of equity = 4 . 10 % + 0 . 70 x 5 . 25 %
Cost of equity = 4 . 10 % + 3.675 %
Cost of equity = 7. 775 %
Cost of equity = 7 . 80%
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The interest tax shield has no value for a firm when: A. the firm’s debt-equity ratio is exactly .5. B. the firm is unlevered. C. the firm’s debt-equity ratio is exactly equal to 1. D. shareholders fully utilize homemade leverage.
The interest tax shield has no value for a firm when (b) the firm is unlevered.
Interest tax shield- The term "interest tax shield" refers to the lower income taxes caused by interest expense deductions from taxable income. Mortgages, for example, may have an interest tax shield for buyers because mortgage interest is deductible against income.
A tax shield is a reduction in income taxes that occurs as a result of taking an allowable deduction from taxable income. For example, because debt interest is a tax-deductible expense, incurring debt creates a tax shelter.
Interest Tax Shield = Interest Expense × Tax Rate
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In the context of data management, _____ refers to all the occurrences sharing the same types of data.a. encapsulationb. metadatac. schemad. entity
In the context of data management, entity refers to all the occurrences sharing the same types of data.
What is data management, and what are some examples?Data management is the process of gathering, storing, analyzing, and exchanging data inside an organization. Every company that generates or uses digital data, especially those with large data quantities, stands to gain from data management.
How does data management function?When making crucial decisions, organizations may rely on the data because of data management, which makes the data more reliable. To avoid expensive duplication of effort, it also makes sure that any data-driven process is consistent and repeatable. For the security of proprietary data, data management is also essential.
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suppose you can choose between two lifetime income paths: (a) an option that gives you a constant stream of $100,000 every year of your productive life, (b) an option that pays you an average of $100,000 per year, but that begins at $50,000 and gradually increases until it ends at $150,000. based on evidence how adaptation affects happiness, which of the following would be true?
Based on evidence of how adaptation affects happiness, it is likely that option (b) would bring more happiness in the long-term.
While $100,000 per year is a comfortable income for most people, the gradual increase of the income in option (b) provides an additional source of happiness as it allows for a sense of progress and achievement.
Additionally, the initial lower income of option (b) allows for a greater appreciation of the eventual higher incomes, as the increase in income would be perceived as an improvement over the initial income.
As such, the overall sense of accomplishment and progress provided by the gradual increase in income throughout life would likely bring more happiness in the long-term.
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Customers of a ________ buy most of the store's products in larger-than-normal packages and quantities.
Customers of a warehouse club buy most of the store's products in larger-than-normal packages and quantities.
What are the main warehouse activities?An appealing option for both bargain hunters and small business owners, warehouse clubs are retail establishments that often offer a wide range of products and allow clients to purchase big, wholesale quantities of the things they sell. With the help of warehousing, you may store, ship, and distribute your products from a single place.
You can track and manage your inventory effectively as a result of this. It can also lower your staffing demands, boost your flexibility, and lower your transportation expenditures. Putting away products, moving objects inside or between warehouses, and choosing items for assembly, production, or transportation are all common warehouse chores. Other warehouse activities include putting together inventory or goods for sale, although they are described elsewhere.
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With which new deal agency did the national recovery administration most closely work.
Answer:
Explanation:
Public Works Administration is considered among the most renowned and authoritative agency that is among the founding pillars of the New Deal.
mass marketing is the optimal promotion tool for building personal and long-lasting relationships with customers.
Mass marketing is the optimal promotion tool for building personal and long-lasting relationships with customers False.
What are the tools for mass promotion?Direct marketing, public relations, sales promotion, and advertising are the four primary promotional strategies.
Which advertising tool is best at influencing consumers' choices, convictions, and most crucially, actions?establishing consumer preferences, convictions, and actions The most costly promotional tool has a high cost per person.
Is advertising the priciest instrument for businesses to use for promotion?Direct marketing is the priciest marketing strategy. A company's resources may be significantly impacted by this in the form of personal selling, commercials, and promotional strategies.
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Xerox sells to different customers in different sales situations. In order to capture customer commitment, Xerox salespeople must determine what steps in the ______ process are appropriate.
Xerox sells to different customers in different sales situations. In order to capture customer commitment, Xerox salespeople must determine what steps in the Selling process are appropriate.
What is the Selling process?The selling process starts with presale preparation, identification of prospects and making a sales presentation in which a salesperson tries to convince a customer that the specific product or service can satisfy his needs.
A salesperson tries to evaluate the brand and product positively in response to the current need of the customer and market.
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Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength. True/False
True, Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength.
What are Junk bonds?Junk bonds have a higher default risk than the majority of corporate and governmental obligations.
A bond is a debt or promise that, in exchange for being purchased, would pay investors interest payments as well as the return of their principal investment.
Junk bonds are bonds issued by struggling businesses that run a significant risk of defaulting, failing to make interest payments, or failing to return investors' principle.
Therefore, Junk bonds are a type of high-risk, high-yield debt. They are frequently employed to fund leveraged acquisitions and mergers as well as to lend money to businesses with uncertain financial standing.
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TRUE/FALSE if the proceeds from the sale of a plant asset exceed its book value a gain on disposal occurs
Not entirely sure if this is what its asking for but if you made a profit on the plant or not depends on how much you spent to care for the plant.
For example, if you bought it for $50, gave it $10 of water, and sold it for $70 you would profit $10.
If you bought it for $50, gave it $50 dollars of water and sold it for $90, you would lose $10.
Mass selling is Multiple Choice the high-quantity sales of unique products based upon the needs and wants of individual consumers. the production and sales of a single item that contains no variation of product benefits. the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers. the use of different images (such as on the cover of Sports Illustrated) to create a more intimate relationship between buyer and seller. the translation of a company's message into multiple languages for use in advertising in different countries or regions.
Mass selling is the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers. (Option C).
What is Mass Selling?Mass marketing, usually referred to as selling, seeks to contact as many people as possible by ignoring the distinctions between market segments and appealing to the entire market with a single offer or plan.
Because of this, companies like Crest and Colgate use mass marketing to promote their products through TV commercials, print ads, and other platforms including social media and outdoor billboards.
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how does lyft benefit from its strategic alliances with gm and waymo?
"It allows Lyft to more effectively compete against Uber" is how lyft benefits from its strategic alliances with gm and waymo
What are strategic alliances?Generally, A strategic alliance is an agreement between two companies to collaborate on a project that will be advantageous to both parties while still allowing each to maintain its individuality.
A joint venture, in which two businesses pool their resources to create a separate business entity, is more complicated and binding than the agreement, which is simpler and less binding.
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the sales of a grocery store had an average of $8,000 per day. the store introduced several advertising campaigns in order to increase sales. to determine whether or not the advertising campaigns have been effective in increasing sales, a sample of 64 days of sales was selected. it was found that the average was $8,300 per day. from past information, it is known that the standard deviation of the population is $1,200.
From past information, it is known that the standard deviation of the population is $1,200. The correct null hypothesis for this problem is μ </ 8000.
Describe null hypothesis and provide an example?According to the null hypothesis, any variation between the selected features you observe in a collection of data is the result of chance. Any discrepancy between the average profits in the data and zero, for instance, is the result of chance if the expected earnings for the gambling game are actually equal to zero.
The null hypothesis can be established in what way?The conventional method for testing a null hypothesis is to choose a statistic based on a fixed-size sample, determine the statistic's value for the sample, and only reject the null hypothesis if and only if the statistic falls within the critical range.
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Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Comfi�s base airport to the major city in the state, Metropolis. Each month 40 round-trip flights are made. Shown below is a recent month�s activity in the form of a cost-volume-profit income statement. Fare revenues (400 fares) $46,500
Variable costs Fuel $16,315 Snacks and drinks 770 Landing fees 1,800 Supplies and forms 1,110 19,995
Contribution margin 26,505
Fixed costs Depreciation 2,940 Salaries 14,196 Advertising 420 Airport hanger fees 1,710 19,266
Net income $7,239
variable cost Breakeven Point
(1) USD = $33,800
(2) Number of Tariffs = 290.75 or 291
Description:
(1) Total Fixed Cost = USD (4) Breakeven Point = 44 Contribution Margin
Breakeven (USD) = $19,266 / (26,505 / $46,500)
Breakeven (USD) = $19,266 / 57%
Breakeven USD = $33,800
(2) Breakeven for a series of fares is calculated as Number of Tariffs = $19,266 / (26,505 / 400)
Breakeven Point of Number of Tariffs = $19,266 / 66 .2625
Breakeven Point of the Number of Tariffs = 290.75 or 291
Variable costs are costs that vary with changes in quantity. Examples of variable costs include raw materials, parts labor, production materials, handling charges, shipping charges, packaging materials, and credit card fees. In some fiscal documents, the variable cost of production is called the "cost of goods sold."
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lena is an award-winning fiction writer. she works out of her apartment. she recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. lena is part of the business market for the desk manufacturer.
True - lena is an award-winning fiction writer. she works out of her apartment. she recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. lena is part of the business market for the desk manufacturer.
manufacturing is the creation or manufacturing of products with the assist of system, exertions, machines, gear, and chemical or organic processing or system. it is the essence of secondary sector of the economic system.[1] The term might also refer to a range of human pastime, from handicraft to high-tech, but it's miles maximum typically carried out to commercial design, in which uncooked substances from the primary quarter are transformed into finished items on a huge scale.
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Fuzzy Button Clothing Company is considering a one-year project that requires an initial investment of $600,000; however, in raising this capital, Fuzzy Button will incur an additional flotation cost of 5%. At the end of the year, the project is expected to produce a cash inflow of $900,000. The rate of return that Fuzzy Button expects to earn on the project after its flotation costs are taken into account is _________.
The rate of return that Fuzzy Button expects to earn on the project after its flotation costs are taken into account is 42.86%.
What is the rate of return?The rate of return is the net gain or loss (which is the total cash inflow minus the total cash outflow) of an investment over a stated period.
The rate of return is expressed as a percentage of the investment's initial cost.
To compute the rate of return, divide the net gain or loss by the initial investment and multiply the quotient by 100.
Initial investment = $600,000
Flotation cost = $30,000 ($600,000 x 5%)
Total costs = $630,000 ($600,000 + $30,000)
Estimated cash inflow = $900,000
Returns (net gain) = $270,000 ($900,000 - $630,000)
Rate of return = 42.86% ($270,000/$630,000 x 100)
Thus, Fuzzy Button's rate of return for this one-year investment is 42.86%.
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How much would $10,000 on deposit at a five percent annual compound interest rate for three years earn?.
1500 would $10,000 on deposit at a five percent annual compound interest rate for three years earn.
What does 5% intensified every year mean?
Accumulate revenue is the premium you acquire on interest. This can be delineated by utilizing essential math: in the event that you have $100 and it procures 5% interest every year, you'll have $105 toward the finish of the primary year. Toward the finish of the subsequent year, you'll have $110.25.
How would you compute build interest on a store?
Accumulate revenue is determined by increasing the underlying chief sum by one or more the yearly loan cost raised to the quantity of build time frames short one.
Is it better to be intensified month to month or every year?
All things considered, yearly premium is typically at a higher rate in light of building. Rather than paying out month to month the aggregate contributed has a year of development. Yet, in the event that you can get similar pace of interest for regularly scheduled instalments, as you can for yearly instalments, then take it.
Is it better to compound every year or quarterly?
Expanded Intensifying Periods
The additional intensifying periods all through this one year, the higher the future worth of the venture, so normally, two intensifying periods each year are superior to one, and four intensifying periods each year are superior to two.
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determine the future value of the following single amounts (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) (round your final answers to nearest whole dollar amount.):
The future value, to the nearest whole dollar amount, of the following single quantities is 1. $38,435.37, 2. $67,091.09, 3. $126,985.63, 4.$94,037.04.
How can I determine future value?How can I determine future value? Using the formula long term value = current discounted x (1 + interest rate)n, you may determine future value using compound interest. Using the following formula, you may determine future value with simple interest: Future value is equal to the present value multiplied by one plus the interest rate throughout the time period.
what is An illustration of potential worthFuture value is the amount of invested money today that will increase in value over time at an interest rate. For instance, if you put $1,000 in a savings today and earn 2% annually, your money will be worth $1,020 after a year. Thus, it will be worth $1,020 in the future.
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69. Cardio, Inc., makes and sells Drawdown, the most prescribed name-brand heart medication. Emitate Corporation has the potential to make a generic version of the same drug. Cardio pays Emitate not to sell v product. This is most likely 2. a deal that neither restrains trade or harms competition. b. a legal restraint of trade. c. a per se violation of the Sherman Act. d. subject to analysis under the rule of reason.
Based on business analysis and the situation described above when Cardio pays Emitate not to sell v product, this is most likely c. a per se violation of the Sherman Act
What is Sherman Act?Sherman Act is the United States Act on business regulations that prohibit the producers or sellers from having contracts, or agreements that unreasonably restrain interstate and foreign trade including a price-fixing agreement.
Generally, the Sherman Act forbids many things to protect the interest of American citizens whether producers or consumers.
The Sherman Acts forbids the following:competitors to fix prices, rig bids, allocate customers, etc.In this case, it is believed that when Cardio pays Emitate not to sell v product, this is a per se violation of the Sherman Act.
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assuming the law of one price, explain what the exchange rate between u.s. dollars and yen has to be if the price of steel in japan is 15,000 yen per ton and the price in the u.s. is $125 per ton (assume no transaction costs).
The law of one price states that when prices are expressed in a common currency, identical goods sold in different locations must sell for the same price in the absence of trade frictions and under conditions of free competition and price flexibility.
Given the steel prices in each country, the exchange rate must be 120 yen to the US dollar. As a result, steel prices in each country are equal. If this were not the case, steel buyers would have an incentive to buy in the country where steel was cheaper, while steel producers would have an incentive to sell in the country where steel was more expensive.
The price in the relatively cheaper country would rise due to increased demand and decreased supply. Increased supply and decreased demand in the relatively more expensive country would lower the price there. This process would be repeated until the prices in both countries were equal.
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Evan incurred education-related expenditures related to his self-employment job. Under which of the following circumstances will Evan NOT be allowed to deduct these expenditures as a BUSINESS expense?
The course or courses meet the requirements necessary to keep his job.
The course or courses only improve Evan's skills in his existing business.
The course or courses qualify Evan for a new trade or business.
Evan incurred education-related expenditures related to his self-employment job. The course qualifies Evan for a new trade or business will Evan NOT be allowed to deduct these expenditures as a BUSINESS expense.
Business expenseBusiness expenses are costs incurred in the course of doing business. They may be used by both small and large organizations. The income statement includes business expenses. To calculate a company's taxable net income, business expenses are subtracted from revenue on the income statement.
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