Answer: TRUE.
The essential notion underlying strategic trade policy is imperfect competition. Strategic trade policy is also referred as Strategic trade theory that includes the policies adopted by a country to understand the outcome of strategic interaction between various firms.
Explanation:
Shipping is the backbone of global trade, around 80% of world trade in goods is carried by the international shipping industry.
The answer is True.
In project management, critical path refers to a sequence of stages that would require the smallest amount of time possible to bring a project to completion.
Critical path can change during a project since there might be circumstances during it which would lead certain activities to be finished longer or faster. Critical path can be determined by a specialized algorithm technique.
Answer:
Italy has comparative advantage in production of stained glass
Sweden has comparative advantage in pounds of fish.
Italy can gain from trade if it receives more than 4 pounds of fish for stained glass.
Sweden can gain from the trade if it receives more than 1/10 stained glass for every pound of fish.
d. 6 pounds of fish per pane of stained glass.
Explanation:
Italy and Sweden both countries can produce stained glass and pounds of fish. Italy can produce 4 pounds of fish per pane of stained glass while Sweden can produce 10 pounds of fish per pane of stained glass. This means Italy has comparative advantage in production of pane of stained glass while Sweden has comparative advantage in pounds of fish.
Answer:
0.9; 100 million; 90 million; 2,143
Explanation:
The new fuel's price change has a standard deviation that is 50% greater than price changes in gasoline futures prices.
So, if standard deviation of future prices is taken as '1' then for spot price it will be 50% higher, i.e 1.5
The hedge ratio:
= Correlation × (standard deviation of spot price ÷ Standard deviation of future prices)
= 0.6 × (1.5 ÷ 1)
= 0.9
The company has an exposure of 100 million gallons of the new fuel.
Gallons in future gasoline:
= Hedge ratio × 100 million gallons of the new fuel
= 0.9 × 100
= 90 million
Each contract is on 42,000 gallons, then
Number of gasoline futures contracts should be traded:
= 90,000,000 ÷ 42,000
= 2,142.9 or 2,143