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You are the international manager of a US business that has just developed a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to manufacture. Several patents protect the unique design of this computer. Your CEO has asked you to formulate a recommendation for how to expand into Western Europe. Your options are (a) to export from the US, (b) to license a European firm to manufacture and market the computer in Europe, and (c) to set up a wholly owned subsidiary in Europe. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO.
Imagine that you and a group of your fellow classmates own a company that manufactures cheap sunglasses. To lower production costs, you want to move your factory from your developed country to a more cost-effective nation. Choose a prospective countr..
When dealing with present value, a lower interest rate:
Consider a single-price monopoly
Which of the subsequent is a Keynesian conclusion about how adjustments occur in a recessionary gap?
Keynesian consumption model has been criticized on the ground that assumes constant MPC. To resolve this problem you are running the consumption model for US economy as: C = 0 + 1 Y^2 +U a. Explain how this model can remedy the problem of Keynesian c..
Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. Is Bridget making the utilit..
Economists assume that firms seek to
our company values the three tons of channel steel at $12,000. Illustrate what is your optimal bid. Elucidate how all step by step calculations to arrive at solution.
Gross domestic product measures... The consumer price index is used to measure inflation over time by cataloging the price of the same basket of standard consumer goods. In the year of my birth, 1987, the consumer price index was at 113.60. By 2014, ..
Expansionary Fiscal Policy relies on changes in tax collections and government spending to achieve a non inflationary level of employment. Given this definition what actions and projected consequences did President Obama enact to realize this goal. B..
Explain why, even though free trade may be good for the economy, we still have trade barriers (tariffs, quotas, regulations, subsidies, etc.) Relate your answer to the Stolper-Samuelson theory and the concept of “specific factors.”
What effects would each of the following have on aggregate demand or aggregate supply, other things equal? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output, assuming that the price le..
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