Answer:
The correct answer is B. A firm charges less than the cost to make the product so as to enter or win a market.
Explanation:
Dumping is a tactic of penetration into international markets, which consists in setting prices below the real cost at which the company has made the export (the company that sells to another country), making it possible for the prices of said product they are inferior in the foreign country than in the country that manufactured them.
Quite simply, dumping refers to cases in which a product is sold in another country at a lower price than it has been produced. For example, suppose the case of shoes.
Company A produces shoes at a cost of $ 10 in country A. Its intention is to sell them in country B. So, finally, it exports shoes to B and sells them for $ 8. That is, below the production price.
Why would a company sell below the cost of production? It seems weird that a company sells below the cost of production. Since this means losing money.
The intention behind this is to gain market share and expel competitors. If a company has the capacity to assume such losses for a certain period of time, and other companies do not, the consequence is clear. The most powerful company will remain in the market and the rest will have to close.
Once the competitors have disappeared, the company that sold below cost price takes advantage of its position of power to set higher prices and earn more money.
Answer:
The correct answer is C
Explanation:
Cost of goods manufactured (COGM) also known as the cost of the goods completed, it computes the aggregate value of the inventory which was produced during the year and is ready for sale in the market.
The budgeted amount of COGM is computed in the same way as the actual cost of goods manufactured is computed, except the budgeted amounts, the formula is:
COGM = Direct Labor Used + Direct Materials Used + Manufacturing Overhead applied + Work in Progress Inventories (Beginning WIP inventory + Ending WIP Inventory.
Answer:
Yes, the results are the same in both frameworks. Please see below for explanation.
Explanation:
With regards to the bond supply and demand framework, people will look to buy more bonds since they are more wealthy now. Hence, the supply of bonds will increase. The supply curve and the demand curve will both move to the right, with the former shifting more than the latter. The equilibrium interest rate will increase.
With regards to the liquidity preference framework, once the economy experiences a positive shift, there will also be an increase in the demand for money. People will make an increased number of transactions as well and hence, the demand curve will move towards the right. The equilibrium interest rate will rise too.
It's incorrect to say competitive strategy- because LVMH is not a business. LVMH doesnt compete with anyone because it is a conglomerate of decentralized brands. Each brand has its own DNA/story/value proposition and its own competitors and unique business strategies.
Having said that, LVMH's 'corporate' strategy is to hold a portfolio of the most cherished, coveted luxury brands and add value through its specialized resources - sourcing, its supply chain management, brand management and talent.
The more you know about financial planning, the better you’ll be able to —adapt to unexpected circumstances.