How does Staffan Linder explain world trade patterns?
What will be an ideal response?
Linder offers two explanations of world trade patterns. Trade in primary products conforms well to the factor-endowment theory. However, trade in manufactured goods is best explained by overlapping demand structures among nations. For manufactured goods, the basis for trade is stronger when the structure of demand in two nations is more similar due to similar per-capita incomes.
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Which of the following is correct about the payback method?
A) It considers only the cash flows that occur during the payback period. B) It considers an asset's profitability. C) It is normally the only method used when deciding whether to invest in an asset. D) It is difficult to calculate.
Political stability and policy stability
A. are not related and policy stability is of no concern to market entry. B. are not synonymous. Policy stability is important; political stability may be of lesser importance. C. are synonymous and both are needed for low-risk market entry. D. are often confused by politicians and slow down market entry.
Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court’s judgment will be enforced by a court in Japan depends on the Japanese court’s application of
A. the act of state doctrine. B. the doctrine of sovereign immunity. C. the principle of comity. D. the Foreign Sovereign Immunities Act.
Which of the following statements about vertical equity is false?
A. If persons with greater ability to pay owe more tax than persons with lesser ability to pay, the tax is vertically equitable. B. Vertical equity focuses on a fair rate structure instead of a fair measurement of the tax base. C. A tax with a single percentage rate is not vertically equitable. D. None of the above is false.