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2. Firm X is about to launch a line of new athletic shoes and sets aside $300,000 for a new advertisement. The firm hired an advertisement agency and paid $50,000 and reserve space in a magazine, Road Runner. The price for the ad space is $250,000. If the firm cancelsthe reservation, it has to pay a cancellation fee of $50,000. The management forecasts that the advertisement would generate sales of 20,000 units. The unit contribution margin would be $20.
Recently, however, a major competitor launched a new line of athletic shoes. The firm now revises sales forecast downward to 14,000 units, with the unit contribution margin remaining the same. Should the firm cancel the launch?
Burger King Beefs Up Global Operations
Nowadays, China drives the global economy. So if the trade barrier is reduced, the Chinese economy will go down and affects the economy of the whole world. Do you agree or disagree with this argument.
Greece has few workers per unit of land while France has many workers per unit of land. Steel is labor intensive and rice is land intensive. According to the long run Heckscher-Ohlin model. The price of land use in Frances steel industry.
During the 1980s, the US Cingress imposed a high sales tax on yachts, figuring that the rich could afford to pay for this luxury. But so many jobs were lost in the boat-building industry that the measure was finally repealed.
Examine the choices MNEs have for handling international trade payments. What are the main issues that affect their decisions? Describe your reasoning.
Determine what role did the rules of many governments play in influencing the international expansion strategies of both McDonald's and Wal-Mart and differentiate McDonald's strategies in China with those of Wal-Mart in Mexico?
The economic staff of the U.S. Department of the Treasury has been asked to recommend a new tax policy concerning the treatment of the foreign earnings of U.S. firms. Currently the foreign earnings of U.S. multinational companies are taxed only wh..
Velocity in the country of nemedia is always stable.In 2001,the money supply was 100 billion and real GDP was 300 billion .in 2002,the money supply increse by 10 percent,real GDP increased by 5 percent and nominal GdP equaled 660 billion.by how m..
What do these numbers tell you about the phase of the business cycle in the United States, Euro area, and Japan in 2008 What do these numbers tell us about the relative size of the natural unemployment rates in the United States, the Euro Area, an..
Firm A and B are exactly the same size as are Firm C and Firm D. Firm A acquires for cash 100 percent of the common stock of Firm C. Firm B acquires 100 percent of Firm D by exchanging one share of its own stock
Consider an increase in U.S. investment demand. Draw a complete and fully-labeled diagram of the open-economy macroeconomic model to illustrate your answer. What happens in the market for loanable funds, to net capital outflow.
Auctions in recent years have resulted in higher prices paid for letters wriiten by John Wilkes Booth than those written by Abraham Lincoln.which of the following events would cause the price differences in these letters to get smaller
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