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gtnhenbr [62]
3 years ago
14

Explain the law of one price and the theory of purchasing power parity. Why doesn't purchasing power parity explain all exchange

rate movements in the short run? What factors determine long-run exchange rates?
Business
1 answer:
Masteriza [31]3 years ago
6 0

Answer:

The law of one price establishes that the product or service price will remain the same for all the entire world.

Explanation:

The law of one price establishes that the product or service price will remain the same for all the entire world. It is necessary to take into account for this law that the price of the currency  needs to be also the same and that the price of the product or service would not be affected by other factors such as additional buyers or sellers in the market.

On the other hand the purchasing power parity refers to the idea of an equilibrium of currencies in exchange rates, it means that the power for purchasing will be represented in the same way in the different countries, and it is important to mention that this theory is base in the law of one price.

The  the long run equilibrium is an idea that in theory represents all the equilibrium of prices, quantities, and markets in general; on the other hand, for the short run equilibrium there are some limitations in which the market cannot be explained as properly and fully balanced.

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Answer:

<u>A Strategic Alliance</u>

Explanation:

A Strategic Alliance refers to a combined effort or activities of two firms so as to strengthen their market position and yet at the same time maintain their individual separate corporate existence.

It represents a mutually beneficial agreement between two corporate firms under which, terms are less binding and stringent than a joint venture.

The purpose behind such an alliance could be, expansion, product line improvement or together gain a competitive advantage.

Such an alliance helps both businesses achieve a common goal driven by mutual assistance and pooling of resources.

In the given case, the tie up between Caffery computer corp. and Chicago desktop to sell computer locking systems alongside computers, would be termed a strategic alliance, since such an arrangement would benefit both, reduce competition for each with collective gain w.r.t market share.

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3 years ago
What is the main difference between a vertical hierarchy of authority and a horizontal specialization?A. Horizontal specializati
AlekseyPX

Answer:

B. Vertical hierarchy shows who reports to whom and horizontal specialization shows the different jobs.

Explanation:

According to the definition of a vertical hierarchy, business features a pyramidical top-down structure. On the other hand, horizontal hierarchy means a business feature with a flat structure. In the case of a vertical hierarchy, the owner stands on the highest point, and ultimately everything has to be structured by maintaining the chain of command. However, in the case of horizontal hierarchy, people are distributed according to their specialty. Moreover, there is a different task for each one. This method permits workers to feel sceptered. As a result, they will create vital choices while not having approval from a manager. That is why, just in the case of Horizontal, there is some freedom for the workers. Nevertheless, in the vertical hierarchy, there must be approval from the manager.

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3 years ago
Many magazine companies are dropping the title of ________ from their publications as evidence of the importance of digital publ
Travka [436]

Answer:

The correct answer is publisher.

Explanation:

The concept of editor includes that person or company, such as an editorial, which is dedicated to editing works or other publications, such is the case of journalistic, among the most recurrent, the publication of books and magazines.

This task constitutes a very important industry in almost all the countries of the world and has a very relevant cultural function, since in addition to of course being an economic business for those who participate directly in it, authors, publishers, sellers, through it The information is set in motion so that it reaches the interested public and in this way it can know more or educate itself about a certain science or topic.

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4 years ago
What challenges did the Aztecs face when they settled in the Valley of Mexico?
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3 years ago
"To communicate directly or indirectly facilitate exchanges by informing and persuading audiences to accept an organization's pr
stich3 [128]

Answer:

promotion

Explanation:

In Marketing mix, promotion refers to all the efforts that the company do in order to achieve two objectives :

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Advertising is the main methods that most companies use in order to create awareness of their product. This might cost a lot of money, but if the advertising campaigns are successful, they will take a lot more in return.

In order to influence the consumers, the company could utilize various techniques. They could use things such as attractive packaging, cheap prices, additional values from the materials/ingredients of the products, innovation, etc.

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