Examples of capital goods in the following topics:
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- Export goods or services are provided to foreign consumers by domestic producers.
- It is a good that is brought in from another country for sale.
- Import goods or services are provided to domestic consumers by foreign producers.
- South Africa purchases capital goods, such as machinery, computers, and electronic products, from other countries.
- Exporting raw materials accounts for the funds spent on importing finished goods.
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- Globalization is the process by which the international exchange of goods, services, capital, technology and knowledge becomes increasingly interconnected.
- This empowers domestic economies to gain a larger array of products, services, human capital, investment, and knowledge through leveraging external markets.
- As a result, the concept of trading goods simpler to produce in that particular region that were of equal value in pursuit of exchange became a practice that derived value.
- What minimized globalization historically was the enormous time and capital investment in travel, creating 'trade spheres' around countries/civilizations that demonstrated potential trade proximity.
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- How might a potential lender use information about a debtor's capital?
- Capital is the value of assets that a debtor currently holds.
- Will the money be used for working capital, additional equipment, or inventory?
- Evidence of responsible use and repayment of credit is a good sign to lenders.
- Capital is the value of assets that a debtor currently holds.
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- Capital expenditures ("CAPEX") are one-time expenses incurred for the purchase of land, buildings, construction of buildings and other assets, and equipment used in the production of goods or in the rendering of services.
- CAPEX include expenses for tangible goods, such as the purchase of plants and machinery, as well as expenses for intangibles assets, such as trademarks and software development.
- The following capital expenditures are capitalized:
- Capitalized expenditures show up on the balance sheet.
- Capitalized interest, if applicable, is also spread out over the life of the asset.The counterpart of capital expenditure is operational expenditure ("OpEx").
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- Industries with high concentrations of small and medium businesses generally do not require enormous capital investment up front.
- Industries with a high concentration of small and medium-sized businesses (SMBs) generally do not require an enormous amount of capital investment up front.
- Goods producers make and sell some sort of physical product or material, while service providers don't make tangible goods.
- In the United States, roughly 20% of SMBs are concentrated in the goods-producing sector.
- This requires a large initial investment of capital and access to low-cost labor, which are both tough for SMBs to access domestically.
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- This is an example of capitalism in which government policies generally target the regulation and not the money.
- Capitalism is generally considered to be an economic system that is based on private ownership of the means of production and the creation of goods or services for profit by privately-owned business enterprises.
- There are multiple variants of capitalism, including laissez faire, mixed economy, and state capitalism.
- Capitalism gradually spread throughout the Western world in the 19th and 20th centuries.
- Explain how free enterprise leads to the economic system of capitalism
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- International trade is the exchange of goods and services across national borders.
- Capital markets involve the raising and investing money in various enterprises.
- Although some argue that the increasing integration of these financial markets between countries leads to more consistent and seamless trading practices, others point out that capital flows tend to favor the capital owners more than any other group.
- Likewise, owners and workers in specific sectors in capital-exporting countries bear much of the burden of adjusting to increased movement of capital.
- The anti-globalization movement is a worldwide activist movement that is critical of the globalization of capitalism.
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- Trade credit is the largest use of capital for a majority of B2B sellers; Accounts Payable is money owed by a firm to its suppliers.
- Trade credit is the largest use of capital for a majority of business to business (B2B) sellers in the United States and is a critical source of capital for a majority of all businesses.
- Trade credit for Wal-Mart is eight times the amount of capital invested by shareholders.
- They all benefit from their collaboration to make efficient use of capital to accomplish various business objectives.
- Payables are often categorized as Trade Payables, payables for the purchase of physical goods that are recorded in Inventory, and Expense Payables, payables for the purchase of goods or services that are expensed.
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- His main goal was to abolish capitalism (an economic system ruled by private ownership).
- Marx abhorred capitalism because the proletariat was exploited and unfairly represented in politics, and because capitalism allows the bourgeoisie to control a disproportionate amount of power.
- Collective or state ownership of capital: capital resources such as money, property and other physical assets are owned by the State.
- Instead of paying for goods and services when you need to buy them, you are allocated goods and services.
- The law of demand states that the higher the price of a good or service, the less the amount of that good or service will be consumed.
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- The growth in cross-border economic activities takes five principal forms: (1) international trade; (2) foreign direct investment; (3) capital market flows; (4) migration (movement of labor); and (5) diffusion of technology (Stiglitz, 2003).
- International Trade: An increasing share of spending on goods and services is devoted to imports and an increasing share of what countries produce is sold as exports.
- For example, China's economy is heavily dependent on the exportation of goods to the United States, and the United States customer base who will buy these products.
- Direct investment in constructing production facilities, is distinguished from portfolio investment, which can take the form of short-term capital flows (e.g. loans), or long-term capital flows (e.g. bonds) (Stiglitz, 2003).
- Capital market flows also include remittances from migration, which typically flow from industrialized to less industrialized countries.