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For your next white paper for company deployments, you have
For your next white paper for company deployments, you have been asked to write about trade, cost, and price using your work in Acme Mexico as one example.
Multinational corporations are continually seeking sources of comparative advantage by investing in developing countries. Sometimes, they are initially willing to pay a high price for that advantage. For example, U.S. tobacco companies create strong incentives for local farmers in developing countries to grow tobacco instead of crops used for domestic food production by offering underwritten loans, subsidies for startup costs, and a guaranteed demand for their tobacco crops. The following questions pertain to the foundations of modern trade theory and comparative cost of production and pricing decisions:
Explain why the U.S. would subsidize the short run costs of production for tobacco farmers in foreign countries. Do these practices guarantee the tobacco farmers a profit in the short run? Long run? Explain.How does this practice shift the equilibriums (price and output) for tobacco and domestic food items (analyze both the local and international effects)?In the case with Acme Motors, what are the production gains to the entire company from the facility in Nuevo Laredo, Tamaulipas specializing in Autoturbo Quattro engines (i.e., why do they just make engines in Nuevo Laredo rather than the entire auto)?Why would Acme Motors shift its production of engines from Detroit to Mexico and then shift the engines back to the U.S. to be assembled into the finished auto?What are the gains and losses for consumers in these types of international production and trading patterns?
Physical capital, Natural resources, Human Capital and Technical Knowledge, should it be Government policy to subsidize the production or acquisition of all or these?
Maker an article or current event article which relates to government regulations or antitrust activities.
Illustrate what is the present value of a contract that promises to make year end payments to you of $100 for the next 20 years if the interest rate is 5%.
Cartels are a form of anti-cooperative activity. Critically examine the factors that may facilitate the establishment, operation and detection of cartels.
Make a paper in which you discuss market trends organization/industry will face. Explain your conclusions. In your paper address how each.
Assume the airline industry consisted of only 2 firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Suppose the demand curve for industry is given by P = 100 - Q and that each firm expects the other to ..
The economy of a country called Econoland is described by the following desired aggregate expenditure components (all figures in billions of $). For the purposes of this question, the first set of equations will be referred to as fiscal policy1.
To what extent do you think that immigrant families should give up their customs to become part of their host Nation.
Assume the role of regional integration in promoting global business of Kenya, Africa.
Classify the following utility functions as risk averse, risk neutral or risk seeking and draw the relevant diagrams
Clarify the factors that led to the change in supply or demand within the article and describe what occurred to change the demand.
In terms of expansionary or contractionary policies, which do policy do you see more in line with the politics of the Democratic Party.
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