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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.
where you deposit 1000dollars at the end of each year for 4 years, what will be the amount of deposits at the end of each year if it is compounded at 12% semi-annually?
In 1952, to provide equilibrium between assets and liabilities of insurance companies, Frank Redington, an English actuary, proposed interest rate immunization te
Treasury Inflation-Protected Securities (TIPS) are the inflation-indexed bonds, the US Treasury offers. The first offer was made in the year 1997. As the name sug
what are the arguments in favour of profit maximization?
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Question : (a) A project must have a useful purpose. Therefore, as a project is evaluated, the team should determine the requirements of the local community and industry. These
Provide three examples of mutually exclusive projects. Mutually elite projects are projects that compete against each other for our selection. If a firm were considering the b
It is not easy to determine the theoretical value of non-treasury securities. However, we can use the treasury spot rate for the valuation of non-treasury security.
What is the difference between the Euronote market, the Euro-medium-term-note market, and the Eurocommercial paper market? Answer: Euronotes are short-term notes guarantees by
What are financial markets? Why do they exist? Ans: Financial markets are in which financial securities are bought and sold. They be present primarily to bring deficit economi
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