6 Different Types of Paid Advertising Techniques Ads for searches. Advertising on social media. Advertising on display. Localized advertising. Print marketing. Public service announcements.
What are the 5 main advertising techniques?Propaganda's basic strategies are successfully transferred to advertising and are still utilised most frequently. Utilization of Repetition, Product Claims, Association and Connection with the Customer, Persuading Customers to Join the Bandwagon, Promotions and Rewards. Product listing advertising, display ads, affiliate ads, native ads, social media ads, video ads, and email ads are the eight primary categories of internet advertisements.
The four Ps are a "marketing mix" made up of four essential components that are used to promote a good or service: product, pricing, place, and promotion. The four Ps are typically taken into account by firms when developing marketing plans and strategies to reach their target audience. Every successful businessperson is aware that keeping existing clients pleased is more crucial than continuously attracting new ones.
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You are considering an investment in a mutual fund with a 4% front-end load and an expense ratio of 0. 5%. You can invest instead in a savings account that promises a 6% APR. (a) If you plan to invest for two years, what annual rate of return must the fund earn for you to be better off in the fund that in the savings account? Assume annual compounding of returns
An investor in a mutual fund must pay a back-end load, often referred to as a contingent deferred sales charge, when they redeem their investment.
For investors who redeem shares within a year, the cost typically begins at 5% and decreases by a percentage point each year until it is removed. Consider a system where fund redemptions within 365 days of the purchase date are subject to a 1% exit load. Let's say that four months following the date of purchase, you redeem 500 units from a plan. Assume that the NAV is 100 rupees. The exit load will be equal to Rs. 500 (1% X 500 units) X 100 (NAV).
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Your worksheet contains a price in cell AS, and many formulas refer to that price. How would you refer to that price in the formulas? a. AS b. SASS c. SAS d. AS5 a Od
Your worksheet contains a price in cell AS, and many formulas refer to that price. By referring SASS to that price in the formulas.
How do you explain sass?An extension of CSS called Sass (short for "Syntactically amazing style sheets") lets you utilize features like variables, nested rules, inline imports, and more. Additionally, it keeps everything organised and makes the process of creating style sheets quicker. All CSS versions are compatible with Sass.Using variables, mathematical operations, mixins, loops, functions, imports, and other intriguing capabilities makes making CSS considerably more powerful. SASS (Syntactically Awesome Stylesheets) is a CSS pre-processor.Syntactically Awesome Style Sheets, sometimes known as SASS in the context of web development, is a preprocessor scripting language that may be either interpreted or compiled into a CSS file. The primary syntax for SASS, which is built on top of the CSS syntax that currently exists, is SCSS, also known as Sassy CSS.Learn more about CSS refer to :
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A property has a net income of $40,000, interest payments of $17,000, and annual cost recovery of $9,000. The property's tax rate is 25%. What is the property's annual tax liability
The property's yearly tax obligation is calculated to be $3500.
The amount that a person, company, or other entity owes to a federal, state or local tax authority is known as their tax liability. In general, you owe taxes when you earn money or make gains off of the sale of an investment or other item.
Anyone who owns a residential, commercial, or rental property is required to pay property tax, which is due annually or semi-annually depending on convenience. The location of the property, the current valuation, and local laws all play a role in determining the tax amount.
Annual Tax Liability = (net income - interest payments - annual cost recovery) * property's tax rate
Annual Tax Liability = (40000 - 17000 - 9000) * 0.25
Annual Tax Liability = 14000 * 0.25 = $3,500
Therefore, Annual Tax Liability = $3,500
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estimating the number of direct goods to reorder falls into which category of decision making?
Estimating the number of direct goods to reorder falls into Structured category of decision making. The correct option is (b).
An organizational structured is a framework that specifies how certain tasks are to be carried out in order to meet the objectives of an organization. Rules, roles, and obligations may be a part of these task. How information is transferred across layers of the organization is likewise governed by its corporate chart. A central authority, for instance, makes choices from the top down, whereas a decentralized structure distributes decision-making authority across different organizational levels. Companies may stay effective and focused by using an institutional framework.
CQ
Estimating the number of direct items to reorder falls into which category of decision making?
(a) Documented (b) Structured (c) Unstructured (d) Procedural .
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What is customer tolerance?
The customer requirement tolerance can be defined as customers' preferences that can be compromised (or customer's indifference or flexibility) that would not affect the purchasing decision.
What is customer tolerance?The tolerance group can be described as a collection of users with the SAP ERP software that have been given certain authorization. The tolerance group aids in specifying the accounting clerks' group in order to choose which amounts are authorised for posting.
Tolerance Groups deal with appropriate, permissible differences and granting users of the organisation the right to upload documents quickly. The SAP tolerance group enables users to conduct transactions with gains or losses in payment for customers or vendors.
Individual GL account master data are given a GL tolerance group. The open item managed GL account in the company code will have these limits enforced by default if the tolerance group is left empty.
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What is the biggest difference between a market economy and a command economy?
In a command economy, the production factors are owned by the government, and it sets the prices and production schedules. A free market bases price determination on supply and demand.
What role does command economy play?Command economies, in which the government sets prices and output levels, provide several benefits, such as minimal or no unemployment, quick decision-making, equality among citizens, and an emphasis on the worker rather than profits. In a command economy, the government is in charge of the system. A mixed economy is one where the government controls some aspects while a free market economy, which has no government interference and is primarily governed by the law of supply and demand, controls other aspects. A mixed economy allows for private production participation, which in turn promotes healthy competition with the potential for profit. Additionally, it supports public ownership of the manufacturing sector, which can help with social welfare demands.
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A salesperson earns a weekly salary of $150 plus a 15% commission of her total sales. Her total sales for the week is $15,000. How much does she earn for the week
Since the sum of a salesperson's fixed wage and commissions, For the week, the salesperson made $2400.
How to calculate salesperson's commission?The salesperson's fixed compensation is $150 each week.
The salesperson's total commission is equal to 15% of his sales.
The salesperson has made $15,000 in total.
We need to ascertain the salesperson's weekly earnings in total. Since the sum of a salesperson's fixed wage and commissions, Her weekly compensation is $150, as far as we know. So, first find out what her sales commission was for that week.
The salesperson's compensation for the week is equal to 15% of the total sales.
Consequently, fifteen percent of all sales are,
y= 15000*15/100
y= 150*15
y= 2250
Therefore, the salesperson's commission was $2250.
s= x+y
s= 150+2250
s= 2400
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What are 3 ways to improve your health?
path to better health healthy eating Your health is intimately related to what you consume, Get frequent exercise, and if you're overweight, lose weight.
Health is "a state of whole physical, mental, and social well-being and not only the absence of sickness or infirmity," according to the World Health Organization. Over time, several definitions have been employed for various objectives. While risky behaviors, like smoking or being under a lot of stress, should be reduced or avoided, healthy activities, like getting enough sleep and exercising regularly, can be promoted. Others are the result of structural factors, such as the way society is built up and how easy or difficult it is for individuals to get vital healthcare services. Some factors that affect health are brought on by human choices, such as whether or not to acquire a harmful habit. There are, additional variables than personal ones.
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The stockholders' equity accounts of Miley Corporation on January 1, 2014, were as follows.
Preferred Stock (7%, $100 par noncumulative, 4,900 shares authorized) $294,000
Common Stock ($3 stated value, 310,400 shares authorized) 744,960
Paid-in Capital in Excess of Par Value - Preferred Stock 14,700
Paid-in Capital in Excess of Stated Value - Common Stock 496,640
Retained Earnings 679,600
Treasury Stock 39,200
During 2014, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb 1 Issued 4,500 shares of common stock for $27,000
Mar 20 Purchased 1,820 additional shares of common treasury stock at $8 per share
Oct 1 Declared a 7% cash dividend on preferred stock, payable November 1
Nov 1 Paid the dividend declared on October 1
Dec 1 Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014
Dec 31 Determined that net income for the year was $275,800. Paid the dividend declared on December 1.
1. Journalize the transactions
2. Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts
3. Prepare the stockholders' equity section of the balance sheet at December 31, 2014
4. Calculate the payout ratio, earnings per share, and return on common stockholders' equity.
The company's ability to generate returns on the investments it has received from its owners is measured by its return on equity.
What function do stockholders serve?As part of their ownership of a firm, stockholders are entitled to a number of privileges, including voting rights over who sits on the boards of directors, dividend payments, and even a claim to a piece of any remaining assets in the event of a company liquidation.
What distinguishes a shareholder from a stockholder?Additional Courses. Both the phrases stockholder and shareholder relate to the holders of shares in a firm, making them co-owners of the enterprise. Therefore, you can refer to firm ownership using either phrase since they both refer to the same thing.
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Why is the workplace changing?
The workplace is changing due to a variety of factors, including advances in technology, the changing nature of the global economy, and the need for organizations to remain competitive.
What is global economy?Global economy refers to the economic interactions between countries around the world. It is a system of production, consumption, and exchange of goods and services that transcends national boundaries. Global economic activities are interdependent, meaning that what happens in one country affects the economies of other countries. Factors such as trade, finance, and investment all play a role in global economic growth. The global economy has been shaped by events such as technological advancements, globalization, and the internationalization of markets.
Technology has enabled organizations to become more efficient and productive, while also allowing them to access a larger pool of talent. The global economy has also shifted, with more companies operating in multiple countries and needing to be able to adapt to different cultures and regulations. Additionally, the need to remain competitive has led to organizations embracing new strategies and approaches to work, such as remote working, flexible hours, and more collaborative working environments.
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Murphy Manufacturing estimated total manufacturing overhead for the year to be $100,000 and that 5,000 direct-labor hours would be used. Actual overhead was $120,000 and actual direct labor-hours were 7,500. The overhead applied to a job completed during the year that used 200 direct labor-hours was ______. Multiple choice question. $4,800 $4,000 $100,000 $3,200
The overhead applied to a job completed during the year that used 200 direct labor hours was $4,000.
The first step is to calculate The predetermined overhead rate
Predetermined overhead rate = $100,000/5,000 direct labor-hours
Predetermined overhead rate = 20 per direct labor-hour
Now let's calculate The overhead applied to the job
Overhead applied to the job = $20 per direct labor-hours *200 direct labor-hours
Overhead applied to the job= $4,000
Therefore, The overhead applied to a job completed during 2021 that used 200 direct labor hours was $4,000.
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Real GDP exceeds the point at which the natural rate of unemployment occurs because of: Select one: a. an increase in the sum of cyclical and frictional unemployment. b. an increase in the sum of cyclical and structural unemployment. c. a decrease in the sum of frictional and structural unemployment. d. an increase in the sum of frictional and structural unemployment.
Real GDP exceeds the point at which the natural unemployment rate occurs because of a decrease in the sum of frictional and structural unemployment
A broad financial indicator of a country's entire economic activity is the gross domestic product or GDP. It measures the total amount of finished goods and services produced over a certain time. A drop in the total of frictional and structural unemployment is often a sign that the economy is at full employment when real GDP reaches the level at which the natural rate of unemployment occurs.
This happens as a result of increased economic activity and employment prospects, which lowers unemployment rates. As unemployment declines, wages and prices may increase, which, if not reined in by monetary policy, could lead to inflationary pressures.
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Based on the information in the graphic, which of the following strategies would a group seeking to preserve the ruling in Roe v. Wade likely pursue
A group seeking to preserve the ruling in Roe v. Wade would likely pursue a strategy of advocacy and activism.
This would involve educating the public about the importance of Roe v. Wade and how it has protected the reproductive rights of women, as well as mobilizing supporters to speak out in support of the decision. Additionally, the group could lobby legislators and other public officials to oppose any efforts to weaken or overturn the decision, and work to ensure that any new legislation is consistent with the ruling.
When displaying data graphically, a chart (sometimes referred to as a graph) uses symbols to represent the data, such as bars in a bar chart, lines in a line chart, or slices in a pie chart.
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If the monthly rent of a property is $4,000, and the Gross Rent Multiplier (GRM) is 91, what is the value of the property
The value of a property is $364,000 if the gross rent multiplier (GRM) is 91 and the rent is $4,000 per month.
The gross rent multiplier (GRM), which measures the price of an investment in real estate to its annual rental revenue before deducting costs like utilities, insurance, and property taxes, is the period of time it would take for the property to break even on gross received rent. A lower GRM is a greater opportunity for a potential real estate investor.
Property value is equal to the monthly rent times the GRM, or $4,000 times 91.
Consequently, the property's value is $364,000
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If investment spending increases and all other levels of spending remain constant, then aggregate:
a. supply increases
b. supply decreases
c. demand increases
d. demand decreases
c. demand increases. If investment spending increases and all other levels of spending remain constant, then aggregate demand increases.
This is because investment spending is a component of aggregate demand, which represents the total amount of goods and services that households, firms, and the government want to buy in the economy. An increase in investment spending will lead to an increase in the production of goods and services, which will in turn lead to an increase in the demand for those goods and services. As a result, prices may rise and firms will want to increase their production to meet the increased demand. This leads to a situation of increased economic activity, which is associated with an increase in aggregate demand.
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Select all that apply Which statements about social media are true? (Choose every correct answer.) Multiple select question. Social media are used by marketers and customers to share many kinds of information. Social media facilitate interpersonal interactions. Social media can be important components of an integrated marketing communications strategy. Social media include online but not mobile technology.
The true statements about social media are that it can be important components of an integrated marketing communications strategy, facilitate interpersonal interactions and is used by marketers and customers, which means options A, B, C are correct.
Social media is the online platform which allows people to interact with each other, share documents, information and images and remain connected with each other as well. Numerous people use till platform to earn money by sharing creative content which is loved by many others. It has become a addictive source of being active as well. Kids spend numerous hours scrolling down the chats or posts of strangers or ideals. Social media as a tool can be a powerful method of influencing politics and other regimes which tend to affect lives of many. Hence, it is necessary that we use social media in a restrictive form so that it does not over power the natural lives of the individuals.
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What are 5 of the 6 financial goals that you should start saving for right away?
Your fiscal pretensions as a pupil ensure that you're academically stable and have financial goals to take care of some of your academic requirements.
SMART fiscal planning is similar to saving plutocrats, investing, erecting your exigency fund, etc. You're sure to secure your fiscal well-being. SMART is an acronym that means Specific, Measurable, Attainable, Applicable, and Timebound. Imagine you've set a thing to save plutocrats.
This thing is vague, and there is no way to tell when. Success has been reached. Short-term financial goals are objectives that associations aim to achieve in a fairly short time( frequently daily or annually). These objects are generally lower in compass and easier to prognosticate and realize than long-term fiscal pretensions.
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After receiving his retirement pay of ₱20,000,000, John is approached by two banks
offering slightly different deposit products. ABC Bank is offering an interest rate of 7% the interest computed on a simple basis. On the other hand, XYZ Bank offers a lower rate of 6. 5%, compounded annually. If John intends to keep the deposit for the next 13 years, which bank offers the better product? What if he just intends to keep the deposit for 7 years?
If John intends to keep the deposit for 13 years, then XYZ Bank offers a better product because the compound interest rate is higher. On the other hand, if John intends to keep the deposit for 7 years, then ABC Bank offers a better product.
The difference in the interest rate between the two banks is not that big, 0.5%, and the compound interest does not accumulate to a higher amount. For a shorter period, the simple interest rate offered by ABC Bank is therefore more advantageous. This allows interest to accumulate over time and the total amount after 13 years is higher than the simple interest rate amount offered by ABC Bank.
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What is opportunity cost long answer?
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them.
The value or advantage lost by selecting one activity over another is referred to as the opportunity cost in microeconomic theory. More specifically, it means that once you choose one activity, you can no longer choose another. The best activity is the one that, once opportunity costs are deducted, delivers the highest return in comparison to all other activities. For instance, if you possess a car that you use just for personal transportation, you are not permitted to rent it out, but if you do, you are not allowed to use it for personal transportation either. If the cost of transportation without a car is more than the cost of renting one,
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What are 2 things you should have financially ready before you purchase a home?
There are several financial considerations that you should be prepared for when purchasing a home. Here are two things that you should have financially ready before making a home purchase:
A down payment: A down payment is a payment made in advance as part of the purchase price of a home. Typically, lenders require a down payment of at least 20% of the purchase price of a home, though some programs may allow for lower down payments. It's important to have a down payment saved up before you start looking for a home, as it will be necessary to make an offer on a property.
Closing costs: Closing costs are the fees and expenses associated with buying a home. These can include things like lender fees, title insurance, property taxes, and other costs. It's important to have enough money saved up to cover these costs, which can add up to several thousand dollars or more. You should be prepared to pay these costs at the time of closing, which is when you finalize the purchase of the home.
Is driving to work a work related expense?
If you want to travel for work, any purchases that you make which are linked to your travel can get claimed as a travel expense. But it is important to know and identify the difference between work-related expenses and personal expenses.
For example, using your vehicle to shuttle to and from work is not a travel expense.
Yet, using your vehicle for other work-related purposes is deductive. Here is a list of some of the most common work-related travel expenses that you can claim or get.
1. Price of staying in a motel, hotel, or similar type of place
2. Any meal charges, such as food and cold drinks
3. Any charges that are accidental to your travel, as long as it is overnight.
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As the clinical director of 24 employees, you have been asked to explain to staff members why they are not getting a raise this year, even though they have been working short-handed for many months and patient satisfaction scores have never been higher. Because you believe yourself to be a transformational leader, you will approach this problem by:
The transformational leader can approach the problem by showing the budget and taking inputs.
In order to achieve a goal that everyone will find desirable, transformational leadership entails involving people being led and also inspiring a shared vision. This in general entails encouraging and empowering people to think that their contributions and efforts will be helpful in problem-solving.
As the clinical director of 24 employees in the aforementioned situation, the person is required to explain to its staff members why they won't be receiving raises this year. The clinical director might explain the situation by presenting the budget to the staff and soliciting suggestions on how to reduce expenses to make rises in the future conceivable.
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Shauna borrows $400 from her parents. She pays them back plus 4% simple interest. What is the total amount of money Shauna will owe her parents
Shauna borrows $400 from her parents. She pays them back plus 4% simple interest. the total amount of money Shauna will owe her parents 400 + 0.04(400).
Simple Interest (S.I.) is a way for figuring out how much interest will accrue on a specific principle sum of money at a certain rate of interest. For instance, if someone borrows Rs. 5000 at a rate of 10 p.a. for two years, they will pay S.I. on the borrowed money for those two years. Ordinary simple interest and precise simple interest are the two forms of simple interest. In order to calculate interest, a year is divided into 360 days for ordinary simple interest and 365 days (or 366 days for leap years) for precise simple interest. The simple interest calculation formula is the same for both approaches.
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Suppose you buy a share of stock for $2500 today and sell it for $7000 at the end of six (6) years. What interest rate will you have earned on your investment
The interest rate is 18.72 percent. An interest rate tells you how much borrowing costs and how much saving pays off.
What is an example of an interest rate?For instance, if you borrow $100 at a rate of 5%, you will have to repay the lender $105 in full. The lender will turn a profit of $5. Throughout your life, you may develop a variety of interests. The true amount you owe will be determined by the interest rate on each loan.
We use the following formula to determine the interest rate: FV = (1+r)" * PV, where PV is the initial amount, initial deposit, initial investment, or amount at zero FV is the future value, n is the number of years/period, and r is the interest rate.
After substituting the values into the formula, we have the following result: "FV = (1+r)" PV *
7000 = (1+r)* 2500 7000 2500 = (1+r)6 7000 r = ( 1/6-1 2500 r = 0.18721 = 18.721% = The rate of interest is 18.721% per annum.
The number of periods/years (n) is six.
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Which are used to compare units of service (UOS) with CPT and HCPCS level II codes reported on claims and indicate the maximum number of UOS allowable by the same provider for the same beneficiary on the same date of service under most circumstances
Comparing units of services (UOS) with CPT and HCPCS phase 2 codes given on claims is done using medically unlikely edits (MUEs).
What is medically unlikely edits (MUEs)?By identifying and prepaying improbable Medicare claims, the MUE programme was put in place to increase the reliability of Medicare payments. On the same line of the CMS-1500, Block 24G (units of service) and Block 24D (code number) are put side by side. Form Location 46 (service units) and Form Locator 44 are compared on the UB-04.
Medical claims against a reference number for medical services provided by one provider/supplier to one customer on one day are subject to a US Medicare units of service claim edit called a "Medically Unlikely Edit."
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How do you calculate production possibility frontier?
The production possibility frontier (PPF) is a graphical representation of the possible combinations of two or more goods that can be produced within a given set of resources. It shows the maximum amount of one good that can be produced for every given level of production of the other good.
To calculate the production possibility frontier, begin by determining the resources available and the two goods that are being produced. Then, calculate the maximum amount of one good that can be produced for each level of production of the other good. Plot the points on a graph and connect them to create the production possibility frontier. The points along the frontier indicate the maximum amount of one good that can be produced for each level of production of the other good, given the resources available.
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Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.)
a. Sales
b. Variable expenses
c. Advertising, salaries, and other fixed out-of-pocket costs d. expenses
e. Depreciation expense
Depreciation expense item(s) in the income statement shown above will not affect cash flows.
Hence, Option E is correct
This is known as depreciation expense. A piece of property's accumulated depreciation is the total amount of depreciation expense that has been incurred since the property first came into use. For accounting purposes, depreciation is treated as an expense because it increases a company's operating costs. Machines and other assets go through wear and tear as they are used, losing value over the course of their useful lives. On the income statement, depreciation is listed as an expense. Depreciation, as we already stated, is not a current asset. Moreover, it is not a fixed asset.When an asset gets low for a single period, then it reflects shows how much the value has lowered down.To know more about depreciation expense here
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Which of the following describes a situation in which the person is hurt by inflation?
a. a borrower during a period which inflation is under-predicted
b. a retiree whose pension is adjusted for inflation
c. a person paid in fixed income during an inflationary period
d. a lender during a period which inflatin is over-priced
The person is hurt by inflation if a person paid in fixed income during an inflationary period
What is an inflationary period?A configuration of quantum fields known as the vacuum state represents a local (but not necessarily a global) minimum in energy.According to inflationary period, the vacuum state of the universe was different from the one we see today at about 1036 seconds after the Big Bang: the inflationary period had a far higher energy density.Any vacuum condition with an energy density greater than zero, according to general relativity, produces an attractive force that causes space to expand. Early high-energy vacuum states in inflationary models result in a very quick expansion. Several features of the contemporary cosmos that are challenging to explain without such aninflationary period are explained by this expansion.To learn more about Inflationary period from the given link
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What is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P
$720,465.80 is the remaining balance on a $780,000 amortized loan.
How do you calculate the balance on amortized loan?For your specific loan of $780,000 with a 5% interest rate and a monthly payment of $4,826.71, the remaining balance after the first payment would be:
$780,000 x (1 + 0.05)^1 - $4,826.71 x ((1 + 0.05)^1 - 1) / 0.05
= $780,000 x 1.05 - $4,826.71 x 1 / 0.05
= $817,000 - $96,534.20
= $720,465.80
So the balance would be $720,465.80 after the first payment.
How are amortized loan payments determined?Take the total loan amount and divide it times the interest rate starting in month one. Then, reduce the figure by 12 to obtain the monthly interest for a loan having monthly payments. The amount that remains after deducting interest from the entire monthly payment is what you pay toward principal.
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Suppose that the USA can make 15,000,000 cars or 20,000,000 bottles of wine with one year's worth of labor. France can make 10,000,000 cars or 18,000,000 bottles of wine with one year's worth of labor. From these numbers, we can conclude:
Which country has the absolute advantage in producing cars? (5 points)
Which country has the absolute advantage in producing wine? (5 points)
Which country has the comparative advantage in producing cars? Which country has the comparative advantage in producing wine? (Show opportunity cost calculations.) (10 points)
Should these two countries trade? Why or Why not? (10 points)
What would you suggest each of these countries produce? Explain your answer. (Make sure to include the number of cars and bottles of wine each country should produce) (10 points)
USA has the comparative advantage in the production of cars and France has comparative advantage in the production of wine.
What is comparative and absolute advantage ?Absolute advantage is a term used in economics to describe a party's better capacity for output. It specifically means the capacity to create a specific commodity or service for less money (i.e., more effectively) than a rival.
The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading counterparts is known as comparative advantage. Comparative advantage is a theory that explains why businesses, nations, or people might gain from trade.
USA has absolute advantage in producing wind because that can produce 20000000 bottles of wine were as France can make only 18000000 bottles of wine USA has absolute advantage in the production of wine.
USA have the comparative advantage in producing car. Comparative advantage of USA in the production of car is
15000000÷20000000= 0.75
Comparative advantage of France in the production of car is
10000000÷18000000= 0.55
USA has the comparative advantage in the production of car
These two countries will engage in trade because USA has completed the production of car whereas France has comparative advantage in the production of wine. Car for USA will export car to France import wine and France full export wine to USA and import car make gains from trade.
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