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What considerations might limit the extent to which the theory of comparative advantage is realistic?Answer: The theory of relative advantage was initially advanced by the nineteenth century economist David Ricardo as a description for why nations trade with one another.The theory claims which economic well-being is improved if each country’s citizens generate what they have a comparative advantage in generating relative to the citizens of other countries, and after that trade products. Fundamental the theory is the assumptions of free trade among nations and that the factors of production (labor, technology, land, buildings, and capital) are comparatively immobile. To the extent that these types of assumptions do not hold, the theory of comparative advantage will not practically describe international trade.
A drug company has developed a new painkiller for chronic pains, although it is doubtful whether the new drug actually has any effect. The company conducts a double-blind experimen
Tokyo Stock Exchange In the 1870s, a securities system was introduced in Japan and public bond negotiations began. This resulted in a demand for public trading institution, whi
Types of Financial Assets Majority of financial assets used worldwide are in the form of deposits, stocks and debt. Deposits Deposits can be made either with banking or
Suppose the supply curve for a good is totally inelastic. If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result? Explain.
Global Equity Indexes: As described earlier in this chapter, there are several stock market indexes available which depict the performance of particular sectors and a country a
The capability of an asset to be converted into cash as quickly as possible without any discount to its value.
Advantage of mutual funds Mutual Funds are advantageous to individual investors in relation to their direct involvement in investment portfolio activity covering the following
FMAC 503 final individual assignment
discuss the applicability of operating cycle in poultry industry[consider broilers]
What are the time dimensions of the income statement, the balance sheet, and the statement of cash flows? Hint: Are they videos or still pictures? Explain. Sol. The i
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