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Indicate whether the strategic effects of the followings competitive moves are likely to be positive (beneficial to the firm making them) or negative (harmful to the firm making them).
a. Two horizontally differentiated producers of diesel railroad engines- one located in the United States and the other in Europe - compete in the European market as Bertrand price competitors. The U.S. manufacturer lobbies the U.S. government to give it an export subsidy, the amount of which id directly proportional to the amount of output the firm sells in the European market.
Determine if direct exporting, foreign direct investment, or licensing would be the best way to get the product to buyers in that foreign country.
Derive a long-run model of exchange rate determination, if exchange rates are determined by Absolute PPP, and goods prices exibly adjust to bring about equilibrium in domestic money and nancial markets.
Explain why this is puzzling. How can the puzzle be resolved, if at all? What are the main alternative approaches? Discuss briefly the advantages and disadvantages of each.
If the average price of goods in Europe increase from 100 in year 2000 to 130 in year 2010. If the average price of goods in the U.S. rises from 120 in year 2000 to 140 in year 2010.
Does the case distinguish between long-run and short-run profits and does the case distinguish between long-run and short-run production costs?
Discuss the differences among horizontal, vertical, and conglomerate mergers and what are real-world examples of each type of merger.
Determine the quota induced price increase and the resulting decrease in consumer surplus and what is the overall welfare loss to Venezuela as a result of the quota?
Does either country have absolute or comparative advantage in any item? Give support for your answer through computing the "resource costs" or opportunity costs for both products in both countries.
Prepare journal entries to record the revaluation on 1 July 2013 and the subsequent sale on 1 July 2014 and revaluation and de-recognition of depreciable assets
China and Japan can manufactures calculators and noodles using land and capital in a competitive market. To manufacture one calculator two units of capital and one unit of land are needed,
Economists generally use Porter's 5-forces framework when making a qualitative evaluation of a company's strategic position. According to Porter, his model should be used at industry level,
Assume that a nation declares that it is moving toward free trade through decreasing its tariffs on intermediate inputs while maintaining its tariffs on final goods.
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