Who uses bills of exchange?

July 7, 2024 No Comments

A: Bills of exchange primarily act as promissory notes in international trade; the seller, or exporter, in the transaction addresses the bill of exchange to the buyer, or importer. A third entity, typically a bank, is party to many bills of exchange to help guarantee

Why are most multinational corporations either from the US, Europe or Japan

July 7, 2024 No Comments

A: The United States, Japan and member states of the European Union are developed countries whose infrastructures and well-established financial markets are conducive to the operation and potential success of multinational corporations (MNCs). The largest number of MNCs are based in the U.S. Many of

Why are price and quantity inversely related according to the law of demand?

July 7, 2024 No Comments

A: The classic microeconomics supply and demand model shows price on the vertical axis and demand on the horizontal axis. In between them is a downward-slowing demand curve where price and quantity demanded have an inverse relationship. The general concept is intuitive: as goods become

Why are the factors of production important to economic growth?

July 7, 2024 No Comments

A: Real economic growth only comes from increasing quality and quantity of the factors of production, which consist of four broad types: land, labor, capital and entrepreneurship. Saving and discovery are the two basic ways to improve or increase the factors of production. Saving occurs

Why are there no profits in a perfectly competitive market?

July 7, 2024 No Comments

A: The “perfectly competitive market” is an abstract theoretical construction used by economists. It serves as a benchmark to compare existing competition in real markets. Under perfect competition, firms can only experience profits or losses in the short run. In the long run, profits and

What percentage of the population do you need in a representative sample?

July 7, 2024 No Comments

A: Technically, a representative sample requires only whatever percentage of the statistical population is necessary to replicate as closely as possible the quality or characteristic being studied or analyzed. For example, in a population of 1,000 that is made up of 600 men and 400

What role does a correspondent bank play in an international transaction?

July 7, 2024 No Comments

A: A correspondent bank is most typically used in international buy, sell or money transfer transactions to facilitate foreign currency exchange and payments. What Is a Correspondent Bank? A correspondent bank is a bank in one country that is authorized to provide services for another

Which countries run the largest budget deficits?

July 7, 2024 No Comments

A: The countries with the largest budget deficits as of March 2015, in order, are Kuwait, Macau, the Republic of Congo, Norway, and Brunei. This is based on an examination of budget deficits as a percentage of gross domestic product (GDP), which puts all countries

What role does the government play in capitalism?

July 7, 2024 No Comments

A: The proper role of government in a capitalist economic system has been hotly debated for centuries. Unlike socialism, communism or fascism, capitalism does not assume a role for a coercive, centralized public authority. While nearly all economic thinkers and policymakers argue in favor of

Which economic factors most affect the demand for consumer goods?

July 7, 2024 No Comments

A: The consumer goods sector includes a wide range of retail products purchased by consumers, from staples such as food and clothing to luxury items such as jewelry and electronics. While overall demand for food is not likely to fluctuate wildly – although the specific

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