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I am facing problems in company final.
I'd be grateful if someone could provide me with good online notes!
I'd be grateful if someone could provide me with good online notes!
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than
thank you so much
What does it mean when we say that exchange rate must be within domstic opportunity cost ratios in comparative advantage? Why does it need to be like that?
Sana Adnan Qamar Baloch
azaanahsan could you pleasse do adjustment for the answer of question2B a) of http://onlineexamhelp.com/wp-content/uploads/2012/06/9706_s11_ms_41.pdf? I feel that the whole balance sheet answer on the marking scheme is wrong. D:
So its like saying we need trade to be beneficial and this can only be true if exchange rate is suitable i.e between the domestic oc ratios otherwise they might face a loss. Right? And how to find if exchange rate does indeed lie between the oc ratios? Can you please quote an example? Thanks a lotasadalam
The statement "exchange rate must be within domestic opportunity cost ratios " is one of the ASSUMPTIONS on which the theory of Comparative Advantage is based on. The comparative advantage theory says that countries should specialize in goods in which they have minimum opportunity cost. This will make the trade mutually beneficial and will enable both the trading partners to consume beyond their PPC.
That said, when we talk about trade being mutually beneficial, we assume that the exchange rate which is being used for the international transaction justifies the opportunity costs of producing of the traded goods. This is because, exchange rates in real scenario can impact the cost of producing a good and if we ignore this assumption, the trade will in NOT be mutually beneficial and the comparative advantage theory will become useless.
Therefore when we use comparative advantage theory in deciding about goods in which to specialize we assume:
1. exchange rate must be within domstic opportunity cost ratios
2. There are no transport costs being charged
3. There are no trade barriers
etc.
Of course most of these assumptions do not hold validity in real terms.
Thanks sana ..god bless u
In departmental account question on what bases did u allocate power??Kilowatt hours rit??Look drawings were 400/month so that would be 4800/year
then cash takings banked would be total -4800 and debited u had balance c/d and b/d and that made 4700 sth
Well,it was a loss in the income statement!!How did it go people? Hope it went well!
btw
was there a profit or a loss in the income statement?
Yeah we jst had to add the Cash and credit sales that's it..!yeah i know that credit and cash sales were given but shouldnt be cash sales banked added too?
The name's Rameez not Ram
Was it under Absorption in all 4?I mean in finishing i got both under absorbed bt in machining i got 1 under absorbed nd 1 over absorbed...!!!How much was the loss in income statement ?? and did u guys get under absrrption for both machining and assembly (I dont remember it ws assembly or finishing) ? Was the invoice value 4391?
thanksthey have used rounded figure 6.90... but i think ur answer is also acceptable....
So its like saying we need trade to be beneficial and this can only be true if exchange rate is suitable i.e between the domestic oc ratios otherwise they might face a loss. Right? And how to find if exchange rate does indeed lie between the oc ratios? Can you please quote an example? Thanks a lot
So if the OC for tractors is 0.25 for China and 10 for japan,and the OC for Computers is 0.1 for Japan and 4 for China,what would be the most suitable exchange rate bw the countries?Thats what i am asking?asadalam
Please go through my notes summary on International Trade in the attached file. It will help you understand how opportunity cost ratios and Terms of Trade are used to make trade decisions. Remember, at this level we are only studying the concept assuming a two-commodity two-economy model. This however is not the case in real life. In reality countries trade in multiple commodities and with multiple countries. In that case Laspeyres Index is used which is not part of your syllabus so just keep things simple for yourself. Check the attached file and let me know if there is a confusion.
Regards
So if the OC for tractors is 0.25 for China and 10 for japan,and the OC for Computers is 0.1 for Japan and 4 for China,what would be the most suitable exchange rate bw the countries?Thats what i am asking?
If China specialises in Tractors and Japan in Computers then should the Exchange rate be 0.25 Chinese Yuan for 0.1 Japanese Yen?
u should know about share capital (ordinary)Hey guys,
I'm doing my AS level now... In accounting, Paper 1... there are always questions on shares and I have no clue on how to go about the questions. I'm really not comfortable with shares related questions but sadly its very important. Can somebody please give me tips on how to do the calculations? Also, please help me know all the points related to shares I need to remember in every situation... Somewhat like in the form of steps? I would really be very grateful to anyone who helps me out Thanks in advance!!! and all the best to all the candidates ^_^
Hey thanks for offering your helpu should know about share capital (ordinary)
abt capital employed etc
tell me the terms or questions
ill help ya coz idk how to start
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