Answer:
40%
Explanation:
the percentage change in price using the midpoint method = {(P₂ - P₁) / [(P₂ + P₁)/2]} x 100
= {($6- $4) / [($6 + $4)/2]} x 100 = [$2 / ($10 / 2)] x 100 = ($2 / $5) x 100 = 0.4 x 100 = 40%
The advantage of using the midpoint method for calculating percentage changes is that it doesn't matter if the change is positive or negative, e.g. it will yield the same result if the price increases or decreases in the same amounts.
A medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The hardware manufacturer should establish it's own sales offices in foreign countries.
Explanation:
By establishing its own sales offices in foriegn countries, the benefits which come through are :
Expanding Brand Recognition : By opening a branch in a new country, a company has the opportunity to expand the reach of their brand.
- More Cost-Effective Production and Manufacturing : There are advantages to setting up a foreign subsidiary in another country where there may be a cost-effective manufacturing and production industry
- Access to Technical Skills / Regional Knowledge : Some foreign countries have greater access to advanced technology and are more adept with technical skills.
- Customer Service Centers : Multinational companies with established international customers may need to open a foreign branch office for customer service reasons, and will look for a business friendly location for that purpose.
- Part of a Global Expansion Plan : Some countries serve as an excellent base, enabling the foreign company to expand into the region.
Answer: Market allocates goods effectively.
Explanation: Effective market allocation is the economic market interaction discussed in this case study. As there was a storm and the power lines got down it was obvious that the demand for the batteries and flashlights will increase and the stock became insufficient but the market forces came into action leading to increase in supply and restoring demand and supply to equilibrium level .
Answer:
In the short run, the Phillips curve states that inflation and unemployment are inversely related. As inflation rises, unemployment decreases. But in the long run, the unemployment rate is fixed and will not be affected by the inflation rate. In the long run a higher inflation rate does not affect the unemployment rate (vertical line).
