Suppose That a Good That Was Formerly an Import Becomes

question 25

Essay

Suppose that a good that was formerly an import becomes an export,perhaps after an import substitution and export promotion strategy.How is this change reflected in the production possibility frontier?

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Definitions:

Total Profits

signifies the entire sum of earnings or profits generated by a business before deducting any expenses.

Unrealised Profits

Profits that have been recorded on paper through accounting but have not yet been actualized through cash transactions.

NCI Allocation

The process of distributing the non-controlling interest’s share of equity in the consolidated financial statements.

Upstream Transactions

Transactions where a subsidiary sells goods or services to its parent company.