Concept explainers
Explain the importance of international trade to global economy.

Answer to Problem 1Q
International trade refers to exchange of goods and services between different nations. With the advent of globalization, every country is dependent on one another for meeting various needs like that of capital, raw materials and labor. Such a move where nations have opened their economy to each other has impacted global economy to a great extent.
Explanation of Solution
Economics is all about efficient allocation and utilization of scarce resources. International trade has facilitated smooth purchase and sale of goods in different markets of the world, thereby enabling fuller utilization of resources.
Some of the advantages of having international trade are enumerated below:
- Facilitates
economic growth : International trade brings about global competitiveness that enhances theefficiency of domestic market as they can make use of latest technology and expertise. - Utilize profuse resources: Some countries are endowed with certain resources while there are other countries that have limited access to these resources. International trade has brought together these nations that could sell excess resources to the countries that need them, thereby making efficient use of resources.
- Countries
gain from international trade: Corporations could export those goods that are available in abundance and import scarce ones. As such; they could make much more profits as compared to selling already abundant goods in the home country.
Therefore, it can be said that international trade has positively influenced global economy by bridging the gap between developing and developed nations.
Want to see more full solutions like this?
Chapter 1 Solutions
INTERNATIONAL ACCOUNTING>CUSTOM<
- I want to this question answer for General accounting question not need ai solutionarrow_forwardHow much overhead costarrow_forwardRamsey Corp. reported the following balances at the end of the year: Credit Sales: $275,000 Accounts Receivable: $68,000 Allowance for Uncollectible Accounts before adjustment: $2,800 debit Ramsey Corp. estimates that 7.5% of the credit sales are uncollectible. After the year-end adjustment, what is the Net Realizable Value of Accounts Receivable?arrow_forward
- I need help with this problem and accounting questionarrow_forwardHikaru Manufacturing, Inc. planned and actually manufactured 250,000 units of its single product during its first year of operations. Variable manufacturing costs were $28 per unit of product. Planned and actual fixed manufacturing costs were $750,000, and selling and administrative costs totaled $500,000. Hikaru sold 150,000 units of product at a selling price of $45 per unit. What is Hikaru's operating income using absorption (full) costing? a) $320,000 b) $480,000 c) $600,000 d) $1,600,000arrow_forwardno AI part 3 and part. 4arrow_forward
- What is its return on equity for these financial accounting question?arrow_forwardQuestion Accounting-Cash conversion cycle: Pem Corp. has an inventory period of 22.6 days, an accounts payable period of 37.7 days, and an accounts receivable period of 31.9 days. What is the company's cash cycle?arrow_forwardSolve this question and please don't use ai toolsarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





