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3 years ago

Select the most appropriate answer about bringing components from other continents.

Business

1 answer:

anyanavicka [17]3 years ago

4 0

Answer: B. It potentially results in better products for the customer.

Explanation:

Importation of components for the production of a good might lead to a potentially better product for consumers because the knowledge base of a superior country in manufacturing the said component would be utilized.

One benefit of Globalization is that better products than can be made locally can be sourced from outside countries so that products are better and stronger.

If a company imports components it could be because they are trying to save costs or it could be that they found Superior products than they did at home. Should the latter be the case then there is a chance that they will make better products because of these better components.

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1. Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest

Ierofanga [76]

Answer:

1. Down payment = $15,000

2. The existing mortgage (loan) was for $135,000

3. The current monthly payment on the existing mortgage is $990.58

4. The total interest over the life of the existing loan = $221,609.58

6. The amount of the original loan paid off is $22,319.

7. Total amount paid to the loan company over the last 10 years is $258,928.58 ($243,928.58 + $15,000)

8. Total interest paid over the last 10 years is $221,609.58

9. The equity in the home is $67,319 ($180,000 - $112,681)

10. The new monthly payments will be $675.58

11. Saving each month because of the lower monthly payment is $315 ($990.58 - $675.58)

12. Total Interest = $352,137.21 ($221,609.58 + $130,527.63)

13. It does not make sense to refinance because what is saved per month cannot compare with the additional interest expense to be incurred for prolonging the payments.

Explanation:

a) Data and Calculations:

1. Cost of a home = $150,000

10% down payment = $15,000

Existing Mortgage = $135,000 ($150,000 - $15,000)

Home Price 150000

Down Payment 10 %

Loan Term 30 years

Interest Rate 8%

House Price $150,000.00

Loan Amount $135,000.00

Down Payment $15,000.00

Total of 360 (30 years * 12)

Mortgage Payments $356,609.58

Total Interest $221,609.58

Ten years after, the loan balance has been reduced by $22,319 ($135,000 - $112,682)

Refinancing calculations:

Home Price 112681

Down Payment 0 %

Loan Term 30 years

Interest Rate 6

Monthly Pay: $675.58 Monthly

Total Mortgage Payment $243,208.63

Total Out-of-Pocket $243,208.63

Total of 360 Mortgage Payments $243,208.63

Total Interest $130,527.63

4 0

3 years ago

A firm decides to provide support services for its products for which its customers will pay extra. These services are not offer

Sindrei [870]

B) Added value

Explanation:

Added value - It is an improvement to the product or service making it more worthwhile.

Competitive advantage makes the product or service more desirable than other competitors.

In this scenario, there is no competition of the services as yet, but definitely has an added value by improving the services.

3 0

3 years ago

Read 2 more answers

You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scal

Leya [2.2K]

Answer:

a. The optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0)

b. Yes, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because $\pi ^{Cheat}$ > $\pi ^{Cooperate}$ .

Explanation:

a. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a "special edition" that will be sold only for one year.

Note: See the attached excel file for the Representation of one shot normal for of the game played between "You" and "Your Rival" together with the payoffs.

From the attached excel file, the dominant strategy is for “You” and “Your Rival” to charge “Low Price” each. If the dominant strategy is played by “You” and “Your Rival”, the optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0).

b. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.

When we have a year-after-year competition between “You” and “Your Rival” but with a 60 percent chance that Toyota would discontinue the Highlander, the payoffs of the firm that continue to comply with the collusive strategy of charging “High Price” by each firm under the normal trigger strategy whereby “You” and “Your Rival” agree to charge high price as long as there is no past deviation by any of the firm, otherwise charge a low price is as follows:

$\pi ^{Cooperate}$ = $6 + $6(100% - 60%) + $6(100% - 60%)^2 + 6(100% - 60%)^2 …….

$\pi ^{Cooperate}$ = $6 / 6% = $10

Therefore, what the firm that cheats earn today is $11 million and it earns $0 forever. The implication of this is that $\pi ^{Cheat}$ = $11

Therefore, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because $\pi ^{Cheat}$ > $\pi ^{Cooperate}$ .

Download xlsx

7 0

2 years ago

Suppose a ten firm industry has total sales of $35 million per year. The largest firm have sales of $10 million, the third lar

lyudmila [28]

Answer:

0.66

Explanation:

the fourfirm concentration ratio is the sum of the concentration ratio of the four largest firms in the industry.

The sales of the second largest firm = $35 million - ( $10 million + $4 million+ $2 million + $12 million ) = $7 million

concentration ratio of firm 1 = $10 million / $35 million = 0.29

concentration ratio of firm 2 = $7 million / $35 million = 0.2

concentration ratio of firm 3 = $4 million / $35 million = 0.11

concentration ratio of firm 4 = $2 million / $35 million = 0.06

Adding the ratios together = 0.66

3 0

3 years ago

What reasons would retailers have for marking prices lower

UkoKoshka [18]

To attract customers to their store and not their more expensive competitors?

4 0

3 years ago