The captive offshoring model allows for risk solely based on the Ricardian model.
<h3>
What is the Ricardian model?</h3>
- While the Heckscher-Ohlin model exclusively examines trade in finished goods, the Ricardian model can be used to assess offshoring.
- There is no distinction because offshore may be studied using the offshoring, Ricardian, and Heckscher-Ohlin trade models.
- The Ricardian model is an economic theory that proposes that countries export what they can produce most efficiently and plentifully.
- Ricardian model is used to evaluate trade as well as, the equilibrium of trade between two countries that have varying specialties and natural resources
- The Ricardian model shows that if anyone wants to maximize total output in the world, then one should fully employ all resources worldwide, allocate those resources within countries to each country's comparative advantage industries, and allow the countries to trade freely thereafter.
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Answer:
<h2>Considering absence of collusion,the firms will choose low price in this instance.</h2>
Explanation:
- First,focusing on all the possible payoffs for the firms under low price situation, the possible individual payoffs for the firms are $8 million and $16 million considering that the other firm chooses low price and high price respectively.
- Now, regarding the individual payoffs from choosing high price, the possible payoffs for the firms are $12 million and $4 million, considering that the other firm chooses high price and low price respectively.
- Therefore, notice that considering all possible scenarios,both the minimum and maximum payoffs from choosing low price are actually higher than the same estimates under choosing higher price.
- Hence, to ensure a higher subsequent individual payoff, both the firms would expectedly choose lower price considering the possibilities of both higher minimum and maximum payoff compared to choosing higher price.
Reminder advertisements are especially effective for products in which stage of their product life cycle? Mature. Heading into the mature stage of the product life cycle shows peaking sales that eventually slow down. When the sales start to slow, advertisers will have reminder advertisements to remind consumers their product is still readily available for purchase.
Answer:
Accounting ethics is primarily a field of applied ethics and is part of business ethics and human ethics, the study of moral values and judgments as they apply to accountancy. It is an example of professional ethics
Explanation:
