Sticky prices is a term used to describe the price of a good or service that is not easily impacted to a change in the economy and their conditions. They stay relative to the price of the item and are used in short-term supply.
Prices can not easily change and implement within a market because you need to consider the economic changes/conditions and the consumer. How it will change things for the market and the consumer are not usually predictable until the price changes. Companies are also not able to judge how competition will fair when there is a change in price.
Answer:
1). Which factor helps Bangladesh's goods stay competitive when compared to goods from China?
E). Fear of relying on a single country
Bangladesh works as a substitute to Chinese imports. Both Bangladesh and Chinese have a comparative advantage in the production of cheap goods such as textiles because of low labor costs, but companies would rather rely on more than one country (for example: China), so they move production to another country with similar conditions in other to diversify their sources.
This in turn increases the bargaining power of the suppliers according to Porter's model.
2). According to Hecksher-Ohlin theory, which of the following gives Bangladesh a cost advantage?
D). Labor-intensive production
According to Hecksher-Ohlin theory, countries specialize and export the goods that use intensively the factor of production that is most abundant. In Bangladesh, the factor of production that is most abundant is labor, and textile goods are intensive in labor, therefore, Bangladesh specializes in this type of goods and exports them.
Answer:
Reseller Market
Explanation:
If a fabric company that sources unique materials from around the world, in the past, was focused solely on the business of <u>supplying fashion designers with the fabric they make into dresses</u>; and later took the opportunity to expand the business by <u>supplying stores that sell </u>sewing and craft goods to consumers who sew at home. Therefore the company is expanding from commercial market into reseller market.
The reseller market are buyers <u>who purchase with the intent of selling those products to others.</u> while the commercial market <u>is the sale of products and services to end users </u>
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Annual deposit= 5,000*1.25= $6,250
n= 35 years
i= 0.08 annual
To calculate the future value of the retirement plan, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {6,250*[(1.08^35)-1]}/0.08= }$1,076,980.02