If France is said to have an absolute advantage over Mexico in the production of computer chips, this means that, given the same resources, France has an absolute advantage in all goods that are complements to computer chips. Mexico must have an absolute advantage in producing some good other than computer chips. France must have an absolute advantage over Mexico in producing all goods. France can produce more computer chips than Mexico. Mexico must have a comparative advantage over France in the production of computer chips.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale. required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse. b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this. c. explain the difference between sale of receivables with recourse as oppose to without recourse.