When working with international firms, U.S businesses expect socially responsible behavior from their business partners.
<h3><u>Why do U.S businesses increasingly focus on international businesses?</u></h3>
American businesses are aware that doing business abroad will boost productivity and broaden their population, which will promote economic expansion. Since the beginning of time, there have been numerous international exchanges, and American businesses now recognize the advantages of offering their services abroad.
To cut costs, some US companies relocate abroad. To grow their business, other companies venture abroad. Many companies can successfully operate on a global scale.
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Answer:
1. 2006 Student
2. 4400 pesos left
Explanation:
If each student had $500 to spend and In 2002, the exchange rate of MXN/USD (Mexican pesos to U.S. dollars) was 9 and In 2006, the exchange rate was 11.
If the hotel room in Guadalajara cost 200 pesos per night in 2002 and 220 pesos in 2006 and each student spent five nights in a hotel, which student had more pesos left over:
Student A - 2002
Spent 5 nights x 200 pesos = 1000 pesos
Total pesos = $500 x 9 = 4500 pesos
Pesos left = 4500 - 1000 = 3500 pesos
Student B - 2006
Spent 5 nights x 220 pesos = 1100 pesos
Total pesos = $500 x 11 = 5500 pesos
Pesos left = 5500 - 1100 = 4400 pesos
Answer: C. Decreasing returns to scale
Explanation: Economic of scale refer to a situation where as the level of output increases, the average cost will decrease. In the case of constant return to scale here the average cost will not change as the output increases.
In this question the firm is operating in the negative sloped portion of the long-run average total cost curve, which shows that it has a "Decreasing returns to scale " .
Answer
A. MRP = Change in revenue / Change in Labor
For first worker = 60 + 59 + 58 + 57 + 56 = 290/1 = $290
Since he produces 5 units.
Second Worker = 55 + 54 + 53 + 52 = 216/1 = $174
Since he produces 4.
Similarly,
Third worker = 51 + 50 + 49 = $150
Fourth worker = 48 + 47 = $95
Fifth worker = $46
B. Now all units are charged at $50
First worker = 5*50 = $250
Second = 4*50 = $200
third = 3*50 = $150
and so on.
C. If the wage is $210 it will demand workers until the MRP decreases below 210 and that happens for worker 2 here.
Since he can produce only $200 for $210 wage, he should not be hired. Hence only one worker will be hired here
D. If the wage falls to $97 the demand for workers will increase, again for worker 4 MRP is $100 which is above $97 and worker 5 goes below.
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