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2 years ago

a u.s. manufacturing company operating a subsidiary in an ldc (less-developed country) shows the following

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A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following answers in different parts and in terms of productivity.

a) The labor productivity (U.S.) = Output / Labor(hours) = $\frac{100505}{19550}$ = 5.14

The labor productivity (LDC) = Output / Labor(hours) = $\frac{19600}{14550}$ = 1.34

The capital productivity (U.S.) = Output / Capital Equipment (hours) =

$\frac{100505}{58600}$ = 1.71

The capital productivity (LDC) = Output / Capital Equipment (hours) =

$\frac{19600}{4550}$ = 4.30

b) The multifactor productivity (U.S.) = Output / Labor + Capital =

$\frac{100505}{19550} + 58600$ = 1.28

Multifactor productivity (LDC) = Output / Labor + Capital =

$\frac{19600}{14550} + 4550$ = 1.02

c.)Raw Material Productivity (U.S.) = Output / raw material = $\frac{100505}{20500}$ = 4.90

Raw Material Productivity (U.S.) = Output / raw material = $\frac{19600}{19550}$ = 1

Note that the full question is:

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results:

US LDC

Sales (units) 100,505 19,600

Labor (hours) 19,550 14,550

Raw Materials (currency) $20,500 $19,550

Capital Equipment (hours) 58,600 4,550

a) Calculate partial labor and capital productivity figures for the parent and subsidiary.

b) Compute the multifactor productivity figures for labor and capital together.

c) Calculate raw material productivity figures (units/$ where $1 = FC 10).

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