Choose two transactions at random that result from international trade; one where purchases are made from another country and one

  

Unit 7 DB: International Trade (ECO201 Macroeconomics)

The U.S. economy relies heavily on international trade. Choose two transactions at random that result from international trade; one where purchases are made from another country and one where the U.S. sends a product to another country. Identify the impact of each of these on imports, exports, net imports, and net exports at the time the transaction takes place.    

For example, if you purchase a product online that is made in and shipped from Italy to you in the United States what is the effect on the U.S. economy in these four categories at the time of the transaction?   

In addition, there has been a lot of news in recent years surrounding tariffs. Exactly what is a tariff and what is the impact of tariffs on international trade? Who pays the cost of tarffs?  

Please present your explanation in a well-written narrative complete with an introduction to global trade, good paragraph structure, and footnotes. Do not list bullet points.  

Unit 7 Discussion (ACC01 Cost Accounting)

Complete and submit question 10-5 on page 44.

10-5. Activity-Based Costing of Customers: Ethical Issues

Central State College (CSC) is a state-supported college with a large business school. The business school offers an undergraduate degree and training programs for a local manufacturer. The state does not support the training programs, which are paid for by the manufacturer under a fixed-price contract.

The college president has asked the dean of the business school for a breakdown of costs by program. The president will be meeting with state legislators asking for an increase in support for the college’s programs. The dean has assigned you to lead the team that will develop the costs by program.

The business school’s computer lab is a major cost item. The lab is used during the day for the undergraduate program and in the evening for the training program.

Required

a. How will you recommend that the cost of the computer lab be allocated to the two programs? Be explicit in your description of the allocation base.

b. The dean tells you that the training program should not be allocated any costs other than its direct costs. She points out that the college was established for undergraduate education and the training program is an incremental activity. “After all, if we didn’t have the training program, we would still have the computer lab,” she says. Do you agree with the dean? Is the dean’s suggestion ethical?

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