Although international trade might have approached the comparative advantage model during the nineteenth century, it certainly does not today, for a variety of reasons. Develop an argument as to why this is not happening today
What will be an ideal response?
Answer: Countries do not appear to specialize only in those products that could be most efficiently produced by that country's particular factors of production. Instead, governments interfere with comparative advantage for a variety of economic and political reasons, such as to achieve full employment, economic development, national self-sufficiency in defense-related industries, and protection of an agricultural sector's way of life. Government interference takes the form of tariffs, quotas, and other non-tariff restrictions. The classical model of comparative advantage also did not really address certain other issues such as the effect of uncertainty and information costs, the role of differentiated products in imperfectly competitive markets, and economies of scale.
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Apollo Corp reported the following balance sheet:
Cash $28,000 Accounts payable $5,000 Accounts receivable 15,000 Notes Payable 12,000 Inventory 45,000 Accruals 17,000 Net Fixed Assets 122,000 Long-Terms Debt 45,000 Common Stock 10,000 Retained Earnings 121,000 Total assets $210,000 Total Liab. & Equity $210,000 Apollo Corp's debt ratio is A) 37.62%. B) 32.17%. C) 39.45%. D) 42.95%.
Give some examples of personal and interpersonal escalation of commitment dilemmas. What are the
psychological reasons for the escalation of commitment phenomena? What will be an ideal response?