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How is a country’s economic well-being enhanced through free international trade in goods and services?As per to David Ricardo, with free international trade, it is mutually advantageous for two countries to every specialize in the production of the goods that it can generate relatively most effectively and after that trade those goods. By doing this, the two countries can raise their combined production, which permits both countries to consume more of both goods. This argument stays valid even if a country can generate both goods more effectively than the other country. International trade is not a ‘zero-sum’ game where one country benefits at the expense of other country. In place of, international trade could be an ‘increasing-sum’ game at which all players become winners.
Q. Explain the Average Rate of return Method? Average Rate of return Method (ARR): This method is as well known as Accounting Rate of Return Method. It is on the basis of accou
Q. Explain Net Present Value Method? Net Present Value (NPV) Method: - This process measures the Present value of returns per rupee invested. In this method present value of
Demand and Supply Shocks The influence of the above macroeconomic factors on the economic performance can be analyzed by classifying their impact on the economy as a supply or
how to calculate the net present value when there is company tax rate and rate of return assume that lease is for 2 years payable at the begining of the yr, at the end of two yrs t
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COMPOUNDING TECHNIQUE is the method of calculating the future values of cash flows and involves calculating compound interest. Under this process, interest is compounded when the
TYPES OF DIVIDEND POLICY 1. Regular dividend policy: Payment of dividend at standard rate is known as regular dividend policy. 2. Stable dividend policy: Payment of fix
Q. Computation of the cost of capital? Computation of overall cost of capital of the firm invoices Cost of debts: debt may be issued at par , at premium or discount it may
explain financing under fireign currency
Bond indexation serves the purpose of replicating the performance of a predetermined benchmark as closely as possible. These benchmarks are generally very broader
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