Table 2-30 -Refer to Table 2-30. This Table Shows the Number of Shows

question 386

Essay

Table 2-30

-Refer to Table 2-30. This table shows the number of labor hours required to produce a wristwatch and a bushel of rice in Japan and Thailand.
a. Which country has an absolute advantage in the production of wristwatches?
b. Which country has an absolute advantage in the production of rice?
c. What is Japan's opportunity cost of producing one wristwatch?
d. What is Thailand's opportunity cost of producing one wristwatch?
e. What is Japan's opportunity cost of producing one bushel of rice?
f. What is Thailand's opportunity cost of producing one bushel of rice?
g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce wristwatches?
h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce rice?

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Definitions:

Inventory Turnover

A measure of the number of times inventory is turned into goods sold during the year, computed by dividing the cost of goods sold by the average inventory.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components that a company uses in the production of the items it sells, as well as the management of finished products available for sale.

Average Total Assets

A financial metric calculated by averaging a company's total assets at the beginning and end of an accounting period, used to evaluate assets' efficiency.

Return Ratio

A financial metric indicating the profitability or effectiveness of an investment, often expressed as a percentage.