Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance Concept Introduction: International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade. Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country. Opportunity Cost : It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 4.13PA

To determine

Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance

Concept Introduction:

International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade.

Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country.

Opportunity Cost: It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

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Answer 2

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 4.13PA

To determine

Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance

Concept Introduction:

International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade.

Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country.

Opportunity Cost: It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

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Answer 3

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 4.13PA

To determine

Reasons as to why international trade occurs and meaning of deficit in the merchandise trade balance

Concept Introduction:

International Trade: The exchange of capital, goods and services beyond the national boundaries of the country is termed as International Trade.

Merchandise Trade Balance: It is the difference between the total imports and exports of the goods of the country.

Opportunity Cost: It is the cost in terms of the forgone benefit that a person could have received by choosing an alternative course of action.

Expert Solution & Answer

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See solution

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Answer 4

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 4.13PA

To determine