Cost Volume Profit Relationships

COST VOLUME PROFIT RELATIONSHIP

Write a 2 to 3 pages paper on Cost Volume Profit Relationships. (not including cover and references).

(using APA 7th ed formatting) and include a cover page and a reference page.

You should have a minimum of three articles references (and remember to use citations in the text to match the references

Articles from 2009 – present only. Use you online library. No Wikipedia, BLOGS with Ads from Yahoo, UKEssay.com; Buzzle.com, or sites that challenge as they present a biased opinion. Google Scholar is accepted.

Need articles as references but also these two books.

References Book: Noreen, E.W., Brewer, P.C. & Garrison, R.H. (2020). Managerial Accounting for Managers. 5th edition.(Chapter 2: Cost Volume Profit Relationship)

Also can look information from another book: Walther, L. (2020). A high-quality, comprehensive, free, online textbook. PrinciplesofAccounting.com. Retrieved from PrinciplesofAccounting.com

With references: Articles from 2009 – present only. Use the University online library, searches like ProQuest .

No Wikipedia, BLOGS with Ads from Yahoo, UKEssay.com; Buzzle.com, or sites that challenge as they present a biased opinion. Google Scholar is also accepted.

Could use information from The Big 4 CPA firms’ websites provide current (published in 2017 or 2016) publications relevant to this course. Here are the Big 4 CPA firms’ websites: KPMG.com EY.com Deloitte.com PWC.com

Format everything, including references APA Version 7th (Publication Manual of the American Psychological Association (APA), 7th ed. (2019, October 1). Washington, DC: American Psychological Association ).

That doc is an example given by the prof to see what she is expecting of the paper.

Here I selected several articles by the title, was not able to read them, so I do not know if any relation. Please look and select accordingly . Thank you again.

Examples articles:

1-

Trifan, A., & Anton, C. (2011). USING COST – VOLUME – PROFIT ANALYSIS BY MANAGEMENT. Bulletin of the Transilvania University of Brasov.Economic Sciences.Series V, 4(2), 207-212. Retrieved from https://search.proquest.com/docview/1000454985

2-

Ciuhureanu, A. (2012). INVOLVEMENT OF MANAGERIAL ACCOUNTING IN ENSURING THE COMAPNY’S COMPETITIVENESS ON THE MARKET. Annals of the University of Petroşani.Economics, 12, 105-116. Retrieved from https://search.proquest.com/docview/2108765809

3-

Kee, R. (2007). Cost-volume-profit analysis incorporating the cost of capital: JMI JMI. Journal of Managerial Issues, 19(4), 478-493,457-458. Retrieved from https://search.proquest.com/docview/

4-

Larkin, Joseph M,PhD., C.P.A. (2009). Cost-volume-profit modeling: A strategic and financial approach. Journal of Business Case Studies, 5(6), 35-40. Retrieved from https://search.proquest.com/docview/

5_

Edwards, J. B. (2016). Modern gross profit analysi. The Journal of Corporate Accounting & Finance, 27(4), 45-55. Retrieved from https://search.proquest.com/docview/

6=

Luther, R., & O Donovan, ,Brian. (1998, Sep). Cost-volume-profit analysis and the theory of constraints. Journal of Cost Management, 12, 16-21. Retrieved from https://search.proquest.com/docview/

The description of the title is a little bit different here:

Week 2 written assignment: Write about cost-volume-profit and provide examples of break-even and target profit. Show formulas as needed and draw a graph or two in Excel.

Answer preview

A cost-volume-profit (CVP) refers to a tool of management. According to Walther (2020), a CVP analysis creates a relationship between the cost of a product, the volume of sales, and organization profitability. The technique can be used for a single product business or in a multiple product situation. It helps the manager to make appropriate decisions regarding a profit or service regarding profitability (Noreen, Brewer, & Garrison, 2020). These key decisions include product price, product portfolio, production capacity, and business operations. Particularly lowering the unit price decreases the total revenue unless the sales volume increases through competitive advantage, thus increasing profitability through economies of scale. The decisions are based either on controlling or forecasting the financial metrics (Ciuhureanu, 2012). The paper thus describes the CVP analysis, including managerial application and the associated benefits.  CVP is used in forecasting and managerial control in an organization through break-

[977 Words]

Cost Volume Profit Relationships

Global Economy with Government

Today’s Global Economy is very top-down driven with the government making all the decisions and regulations as it relates to doing business globally.

What are some advantages and disadvantages to this approach?

Is there another approach that might work better?

Please provide references.

Answer preview

Another approach that may be applied in controlling the global economy is the bottom-up model. It comprises of agents who have a limited understanding of the entire global economy. Instead, they pull the pieces of data that they can familiarize wit and utilize them in developing the international market. This approach is, however, not recommendable because players are equipped with incomplete information. Decision making in governing the economy will be filled with gaps and errors (De Grauwe, 2014). It will lead to a slow or unstable economic growth because the loopholes may negatively influence the market. Therefore, no better technique might work better in managing the international economy.

[318 Words]

Global Economy with Government

The Role of Mortgage Lenders in the Great Recession

You will have to use APA style. The paper must include list of references ( at least 2-3 sources).

You will have to explain the role mortgage lenders played in 2008-2009 great recession. No introduction needed. Straight to the point, please.

Let me know if you have any questions. The topic is Mortgage Lenders and their role (e.g. Countrywide) in 2008-2009 Great Recession in the USA

you need to choose a particular institution/factor that played a key role in the recent financial crisis. For example, you can write about the reasons for the crisis, the impact of the crisis on financial markets and institutions, the impact on the global economy, the response to the financial crisis (the bailout plan and the effect of it on financial markets), or the aftermath of the crisis.
Answer preview

The Role of Mortgage Lenders in the US’s 2008-2009 Great Recession

The US experienced the worst financial crisis that started in 2008-2009 caused by hedge funds and insurance companies. It created what is referred to as the subprime mortgage crisis. Primarily, according to Berndt, Hollifield, and Sandas (2010), before the Great Recession began to be felt, the mortgage lenders and brokers repackaged loans, which earned them higher profits that led to riskier ex-post. Mortgage lenders are seen as the core of the Great Recession because it created a decline in the house prices, and by 2007, the borrowers were unable to resell their houses. The inability to make profits after reselling their houses led to foreclosure and devaluation. The mortgage investment market had flooded, which resulted in huge losses for the borrowers and mortgage lenders. As a result, the financial markets elapsed because most mortgage lenders had acquired hedge funds that required repayment. It is was one of the leading roles that the mortgage lenders played in the 2008 financial crisis.

[986 Words]

The Role of Mortgage Lenders in the Great Recession

Bitcoin Economics

This week we discussed Bitcoin Economics. For this week’s research paper, you need to search the Internet and explain why some businesses are accepting and other businesses are rejecting the use of Bitcoins as a standard form of currency. Your paper needs to identify two major companies that have adopted Bitcoin technology.

Your paper should meet the following requirements:

• Be approximately 3-5 pages in length, not including the required cover page and reference page.

• Follow APA guidelines. Your paper should include an introduction, a body with fully developed content, and a conclusion.

• Support your response with the readings from the course and at least five peer-reviewed articles or scholarly journals to support your positions, claims, and observations. The UC Library is a great place to find resources.

• Be clear with well-written, concise, using excellent grammar and style techniques. You are being graded in part on the quality of your writing.

Answer preview

In research analysis, economists have published various reasons why business corporations use bitcoins as a formal currency. According to Ammous (2018), there are five primary unchangeable reasons as to why businesses opt to adopt the use of Bitcoin currency. These reasons include the store of value, maximum security, individual sovereignty, a global unit of account, and finally, an international and online settlement unit. Store of value is the primary reason why companies choose Bitcoins, which means it can be purchased at a lower cost and sold at a higher value depending on the market. Business corporates have adopted this mechanism because they use bitcoin currency as a standard form of investment. Bitcoin can overcome all the currencies across the globe; hence it gives companies to invest in easily as part of storing valued assets.

[1317 Words]

Bitcoin Economics

Long run effects of economic policies

Use the data, discuss the Long run effects of economic policies of the country.

Now I need an analysis of the long run effect of the country.

Answer preview

The average unemployment rate before the recession was 9.06 compared to 13.4 after the recession. This was after the economic progress of the private sector deteriorated. The different economic policies after the recession, which is contractionary fiscal policy combined expansionary monetary policy and expansionary fiscal policy and expansionary monetary policy, have advantages and disadvantages in the long-run economic growth of Greece. Contractionary fiscal policy tends to fix the economy by siphoning money in the private sector through raising taxes or cutting government spending, to regulate unstable production. The advantage of this fiscal policy, combined with expansionary monetary, will control the long-run inflation of the country. Another advantage is that the contractionary fiscal policy will result in control of the GDP-to-debt ratio of the country (Hayes, 2020). The disadvantage of these policies is that it will result into a slow growth rate of the private sector and low recovery from unemployment. Expansionary fiscal policy and expansionary monetary aims at increasing money sacculation in the economy to enable carrying out economic activity. The advantage of this will revive the economy faster and create a sustained revenue generation in the long run. Continue increased government spending and tax rate reduction can result in inflation in the long term.

[842 Words]

Long run effects of economic policies

Multicultural identity and multicultural therapy

As you continue to prepare for the in-residence component of this course, be aware of how this week’s Learning Resources synthesize the cultural identity factors you explored in the previous weeks. Generally, no one individual assumes just one identity. An individual’s race, ethnicity, gender, sexuality orientation, socioeconomic status, class, age, and ability contribute to that individual’s multicultural identity.

For this Discussion, review this week’s Learning Resources. Select at least one topic from the course readings on multicultural identity and multicultural therapy that you found challenging, and reflect on why you found this to be so. Also consider any other topics that have been challenging this term. Finally, think about what topics you hope are covered in more depth during the week in-residence.

Post by Day 4 a description of at least one topic from the required readings on multicultural identity and multicultural therapy that you found challenging, and explain why. Then, explain any other areas or topics that have been challenging in this course. Finally, explain what topics you hope are covered in more depth in-residence.

Be sure to support your posts with specific references to the Learning Resources.

 

 

Readings

  • Duran, E. (2006). Healing the soul wound: Counseling with American Indians and other native peoples. New York, NY: Teachers College Press.
    • Chapter 3, “The Healing/Therapeutic Circle” (pp. 39–48)
    • Chapter 6, “Diagnosis: Treating Emotional Problems as Living Entities” (pp. 79–111)
  • Bernal, G., & Rodríguez, M. M. D. (2009). Advances in Latino family research: Cultural adaptations of evidence-based interventions. Family Process, 48(2), 169–178.
    Retrieved from the Walden Library databases.
  • Bernal, G., Jimenez-Chafey, M. I., & Rodríguez, M. M. D. (2009). Cultural adaptation of treatments: A resource for considering culture in evidence-based practice. Professional Psychology: Research and Practice, 40(4), 361–368.
    Retrieved from the Walden Library databases.
  • Chavis, A. Z., & Hill, M. S. (2009). Integrating multiple intersecting identities: A multicultural conceptualization of the power and control wheel. Women & Therapy, 32(1), 121–149.
    Retrieved from the Walden Library databases.
  • Diaz-Martinez, A. M., Interian, A., & Waters, D. M. (2010). The integration of CBT, multicultural and feminist psychotherapies with Latinas. Journal of Psychotherapy Integration, 20(3), 312–326.
    Retrieved from the Walden Library databases.
  • Hays, P. A. (2009). Integrating evidence-based practice, cognitive-behavior therapy, and multicultural therapy: Ten steps for culturally competent practice. Professional Psychology: Research and Practice, 40(4), 354–360.
    Retrieved from the Walden Library databases.
  • Munsey, C. (2009). Working with Latino clients. Retrieved from http://www.apa.org/gradpsych/2009/11/latino-clients.aspx
  • Owen, J., Leach, M. M., Wampold, B., & Rodolfa, E. (2011). Multicultural approaches in psychotherapy: A rejoinder. Journal of Counseling Psychology, 58(1), 22–26.
    Retrieved from the Walden Library databases.
  • Ponterotto, J. G. (2010). Multicultural personality: An evolving theory of optimal functioning in culturally heterogeneous societies. The Counseling Psychologist, 38(5), 714–758.
    Retrieved from the Walden Library databases.
  • Sanchez-Hucles, J. V., & Davis, D. D. (2011). Women and women of color in leadership: Complexity, identity, and intersectionality. American Psychologist, 65(3), 171–181.
    Retrieved from the Walden Library databases.
  • Thompson, V., Bazile, A., & Akbar, M. (2004). African Americans’ perceptions of psychotherapy and psychotherapists. Professional Psychology: Research and Practice, 35(1), 19–26.
    Retrieved from the Walden Library databases.
  • Williams, C. (2005). Counseling African American women: Multiple identities—Multiple constraints. Journal of Counseling & Development, 83(3), 278–283.
    Retrieved from the Walden Library databases.
  • Document: Henry Thompson Case Conceptualization and Case Demonstration Overview (Word document)
    Note:
    You will use this document as a reference to the requirements of the Case Conceptualization and Case Demonstration.
  • Document: Henry Thompson Case Notes (Word document)
    Note:
    You will use this document to inform your Case Conceptualization and Case Demonstration.
  • Document: Henry Thompson Case Conceptualization (Word document)
    Note:
    You will use this document to complete your Case Conceptualization and inform your Case Demonstration.
  • Document: Multicultural Population Research Paper Overview (Word document)
    Note:
    You will use this document to complete your Multicultural Population Research Paper.

Media

  • Laureate Education, Inc. (Executive Producer). (2012b). Family case study [Interactive media]. Baltimore, MD: Author.

    Note: Please click on the following link for the transcript: Transcript (PDF document).

  • Microtraining Associates (Video Publisher). (2005b). Race, gender, and sexual orientation: Counseling people with multiple cultural identities [Video webcast].
    Retrieved from the Walden Library databases.

Optional Resources

  • Gone, J. P. (2010). Psychotherapy and traditional healing for American Indians: Exploring the prospects for therapeutic integration. The Counseling Psychologist, 38(2), 166–235. Retrieved from the Walden Library databases.
  • Hwang, W. (2006). The psychotherapy adaptation and modification framework: Application to Asian Americans. American Psychologist, 61(7), 702–715.
    Retrieved from the Walden Library databases.

Answer preview

The topic of multiple intersecting identities, especially for women at the receiving end of intimate partner violence, is another topic that still eludes me. Bouts of violence against women, especially those instigated by their loved ones, have been part and parcel of society, majorly stemming from the systemic inequalities prevalent in society (Chavis & Hill, 2009). I have challenges understanding how a woman’s cultural and structural identities might influence their perception of intimate partner abuse. The available research regarding intimate partner violence treats all women as a uniform entity rather than recognizing their diversity. Getting rid of this problem requires people to understand how the various systems of structural inequality in society intersect. I need to know how race, ethnicity, age, and sexual orientation shape the perception women have regarding the choices available to them after being victims of intimate partner violence (Chavis & Hill, 2009).

[675 Words]

Multicultural identity and multicultural therapy

Overconsumption

ttps://www.youtube.com/watch?v=9GorqroigqM

Focusing on The Story of Stuff (SS), write a 4-5 pg. essay on one of the following questions:

  1. In view of Leonard’s arguments about the Materials Economy, why is it so important to reduce overconsumption? You may use the book, as well as examples from the Internet and your own life. You may want to address quality of life issues in the U.S. and around the world, such as environment, family, physical health, mental health, finances, employment, education, and recreation.

***

2.How has The Story of Stuff changed your view of many of the things you buy? Choose several of these products and trace their way through the Materials Economy using Leonard’s five stages and discuss the damage they cause and how we can reduce our use of each product. You may use the book, personal experiences, and Internet sources in your discussion.

Requirements:

Answer preview

Climate change is a result of overconsumption. In the production cycle, trees are destroyed when mining minerals or to create land for farming. The destruction of trees leads to an increase in carbon dioxide produced since plants that can utilize the carbon dioxide are few. After the extraction of the resources, they are processed in the industries to make consumable products. Industries are the leading producers of harmful gases that contribute to global warming. Other toxic chemicals are added to the production process during the manufacturing process, and the byproducts of the production process are harmful gases. After consumers use the products, the waste they generate is filled in landfills while others are incinerated. The majority of the products that are manufactured nowadays are designed to lose relevance after a short

[1335 Words]

Overconsumption

Federal government in American economics

WRITE A 750-WORD RESPONSE TO THE FOLLOWING PROMPT:

How did the role of the federal government in American life change between World War I and World War II (c. 1919-1941)? Who were the key players in this transition, and what were the key events? How might we understand and describe the shifting role of the federal government across time? How were the activities of the federal government related to the expansion or limitation of American freedom?

In formulating your answer, choose three different individuals/groups that we have discussed in the middle section of the course (modules 6-9). Explain how each of them defined, explained, and imagined the proper place of the federal government in American economics, culture, and society. You should also compare these contrasting views of the role of government. What were the points of agreement and disagreement? Could multiple perspectives coexist, or were they mutually exclusive?

Be as specific as possible, and be sure to use the assigned readings to defend your answer.

INSTRUCTIONS:

  • Be as specific as possible, and be sure to use the assigned readings to defend your answer.
  • Answers that are too short or too long (more than 50 words in either direction) will lose points.
  • Your answer must quote and cite at least three different documents from the required reading for Modules 6 through 9.
  • Your answer will be checked for plagiarism using Turn-It-In.
  • Your answer should be based on material covered in class lectures and in the assigned reading for this course. DO NOT CONSULT OTHER SOURCES. I do not want to know what Google tells you about this topic. All the information you need to answer this question can be found in the assigned reading and in your class notes.

SOME TIPS ON FORMATTING AND LENGTH:

  • 750 words is not much! It’s about three double spaced pages (1” margins, 12 point font).
  • Be brief, especially in your introductory paragraph. Get right to your argument, don’t waste words describing everything we’ve covered in the course. There’s no need to make sweeping statements like “Since the beginning of U.S. history….”
  • The prompt asks several different (but closely related) questions. You do not need to answer each and every one of them, but you should try to address most of them (at least in passing) in your essay.
  • Suggested format:
    • 75 words: Introductory paragraph that ends with a clear thesis statement (that is, your argument and your answer to the question asked in the prompt).
    • 200 words: body paragraph 1, which should contain your first example and a quotation from your first document.
    • 200 words: body paragraph 2, which should contain your second example and a quotation from your second document. A transition paragraph between paragraphs should address the similarities/differences between your first and second example.
    • 200 words: body paragraph 3, which should contain your third example and a quotation from your third document. A transition paragraph between paragraphs should address the similarities/differences between this example and your first two examples.
    • 75 words: a concluding paragraph that compares your three examples and reiterates (not word-for-word!) your thesis from the introduction.
  • You MUST introduce and contextualize your quotes. We’ve read dozens of documents this term. You must tell your reader what document you’re quoting.
    • GOOD: Southern African Americans had their own definition of freedom. “We claim freedom as our natural right,” black residents of Nashville stated in a petition, “and ask that in harmony and co-operation with the nation at large, you should cut up the roots the system of slavery.” As these petitioners noted, the work of freedom remained incomplete, even after emancipation.
    • BAD: Southern African Americans had their own definition of freedom. “We claim freedom as our natural right, and ask that in harmony and co-operation with the nation at large, you should cut up the roots the system of slavery.”
      The second example is extraordinarily confusing for your reader. Who are you quoting? Are these your words? Introduce your quotes, and then explain them in your own words.

You should also try to avoid extended quotations. In almost all circumstances, you shouldn’t be quoting more than one or two sentences at a time. When you’re trying to quote a longer passage, intersperse your own words as necessary. When I see paragraph-length citations I start to worry that you’re just trying to fill up space…

Historians use Chicago Manual of Style, Humanities format. Use footnotes, not parenthetical/in-text citations.

CITE THE DOCUMENTS FROM ERIC FONER’S VOICES OF FREEDOM AS FOLLOWS:

Elizabeth Cady Stanton, “Home Life,” in Eric Foner, ed. Voices of Freedom, Vol. 2, 6th Edition (New York: W.W. Norton, 2020), 14-17.

  • You do not need to cite my video lectures. Consider these to be common knowledge shared by the class.
  • Submit your document as a Microsoft Word file – or a similar word processing file. Do not convert the file to a PDF.
  • Late papers will lose 1/3 of a letter grade per 24 hours (i.e. A- becomes B+, C+ becomes C).
  • Please include a word count on your paper.

Module 6 reading:

Document 126 – Woodrow Wilson, A World “Safe for Democracy” (1917)

Document 127 – Randolph Bourne, “War is the Health of the State” (1918)

Document 128 – A Critique of the Versailles Peace Conference (1919)

  • Document 129 – Carrie Chapman Catt, Address to Congress Women’s Suffrage (1917)
  • Document 130 – Eugene V. Debs, Speech to the Jury (1918)
  • Document 131 – Rubie Bond, The Great Migration (1917)

Module 7 reading:

Document 118 – Manuel Gamio on a Mexican-Amerian Family and American Freedom (c. 1926)

Document 133 – John A. Fitch on the Great Steel Strike (1919)

Document 136 – The Fight for Civil Liberties (1921)

  • Document 134 – Immigration Quotas Under the Johnson-Reed Act (1924)
  • Document 138 – Congress Debates Immigration (1921)
  • Document 140 – Alain Locke, The New Negro (1925)
  • Document 141 – Elsie Hill and Florence Kelley Debate the Equal Rights Amendment (1922)

Module 8 reading:

Document 142 – Letter to Francis Perkins (1937)

Document 143 – John Steinbeck, “The Harvest Gypsies” (1936)

Document 144 – John L. Lewis on Labor’s Great Upheaval (1937)

Document 145 – Franklin D. Roosevelt, “Great Security for the Average Man” (1934)

  • Document 146 – Herbert Hoover on the New Deal and Liberty (1936)
  • Document 148 – Frank H. Hill on the Indian New Deal (1935)
  • Document 149 – W.E.B. DuBois, “A Negro Nation Within A Nation” (1935)

Module 9 reading :

Document 150 – Franklin Roosevelt on the Four Freedoms (1941)

Document 151 – Will Durant, “Freedom of Worship” (1943)

Document 152 – Henry R. Luce, “The American Century” (1941)

Answer preview

of defending democracy, which Catt pushed for women.

Furthermore, President Franklin Roosevelt, in his Four Freedom Speech, addressed Congress revealing the need for having laws on internal affairs. Hence, his speech pushed for citizens’ freedom of speech, freedom from want, the liberty to worship, and freedom from fear. Roosevelt urged, “Our actions and our policy should be devoted primarily–almost exclusively–to meeting this foreign peril. For all our domestic problems are now a part of the great emergency” (Document 150). In this case, the president was worried that the national policies provided decent rights that respected other nations, and yet the United States internal affairs were in shackles. As much as the citizens had chosen to avoid war, the president needed them to be ready for tough situations. Hence, the federal government worked together with Mrs.

[872 Words]

Federal government in American economics

International Political Economy

2 pages single space

MLA

Literature sources

Exact page number- DONT USE GUESS WORK I WILL CHECK ALL SOURCES PLEASE I NEED QUALITY WORK.

Link for the source

all the question like an essay form

Answer preview

Public foreign aid has contributed both positively and negatively in the economic and social progress in developing nations. The assistance has enabled these countries to embark on ambitious government projects that have boosted economic growth. According to Yiew and Lau, aid improves not only infrastructure but also energy transport and communications systems in the recipient countries (21). The aid has also helped developing nations during crises such as drought, famine, and floods to cater to those affected people’s needs. They reduce the impact of poverty and contribute to developing strong ties between the giver and the recipient nations.

On the other hand, foreign aid is at times offered as a political tool, which ends up undermining the sovereignty of the nation as leaders are forced to act per the donor’s wishes rather than the good of their citizens. Yiew and Lau note that excessive foreign aid can lead to a negative impact on economic growth as a whole (27). Foreign aid affects price mechanism since the laws of supply and demand are affected by the creation of more supply in resources or money for spending.

[1319 Words]

International Political Economy

Free of Fair Trade

Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

The importance of trade continues to be a debated topic because the gains are not always quantifiable by those involved. Some would argue that due to a significant difference in wages and regulations, free trade is not always fair trade and that free trade agreements are used by companies to simply chase lower wages and fewer regulations. In the United States, this has been an ongoing debate in regard to both the North American Free Trade Agreement (NAFTA) and the normalized trade relationship with China. Take some time to read the following articles before beginning your post:

Based on what you have read, please address the following questions:

  • Which do you feel is a better approach, free or fair trade, and why?
  • Given the concept of comparative advantage, should we even be discussing free versus fair trade?

Answer preview

Comparative advantage refers to one nation’s ability to produce specific goods at a lower opportunity cost than other potential producers. The theory implies that countries should import products whenever importation guarantees a lower opportunity cost than the production of the same goods. Adhering to principles of comparative advantage ensures that resources are distributed equitably across the market. Comparative advantage removes the sting out of the debate pitting fair trade against free trade because it standardizes the market conditions and reduces the susceptibility of small-scale producers and workers to exploitation.

[577 Words]

Free of Fair Trade