Business, 24.03.2021 16:40 brandisouthern9

Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two goods, timber and televisions. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two industries. When the Home country moves into doing free trade with the Foreign country, the Home country exports timber. 16 points total, 2 points each. For each statement below, determine whether it is true or false, and then briefly explain why?

a. The Home country produces only timber under free trade.
b. Going from closed economy to free trade, the opportunity cost of TV increases in the.
c. Labor employment increases for the TV industry in Home.
d. The workers’ purchasing power for TV increases in the Home country.
e. Capital owners are better off under free trade in the Home country.
f. After free trade, the rental rate for land increases relative to the price of TV in the Home country.
g. The marginal product of labor for the timber industry increases under free trade in the Home country.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:00

Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?

Answers: 3

Answer

Business, 22.06.2019 06:30

"in my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said wim niewindt, managing director of antilles refining, n.v., of aruba. "at a price of $21 per drum, we would be paying $4.70 less than it costs us to manufacture the drums in our own plant. since we use 70,000 drums a year, that would be an annual cost savings of $329,000." antilles refining's current cost to manufacture one drum is given below (based on 70,000 drums per year):

Answers: 1

Answer

Business, 22.06.2019 21:00

On july 2, year 4, wynn, inc., purchased as a short-term investment a $1 million face-value kean co. 8% bond for $910,000 plus accrued interest to yield 10%. the bonds mature on january 1, year 11, and pay interest annually on january 1. on december 31, year 4, the bonds had a fair value of $945,000. on february 13, year 5, wynn sold the bonds for $920,000. in its december 31, year 4, balance sheet, what amount should wynn report for the bond if it is classified as an available-for-sale security?

Answers: 3

Answer

Business, 22.06.2019 21:30

True or false payroll withholding includes income tax, social security tax, medicare tax as well as money you deduct for your retirement fund.

Answers: 1

Answer

You know the right answer?

Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two...

Questions