Answer:
Tina's Tunes is likely to fail because it is ignoring the technological environment.
Explanation:
Technological Environment Technological change can have impact on the decisions taken by business.
Technological change can involve:
– New process of production: new ways of doing things which rises productivity of factor inputs, as with use of robotics in car assembly techniques which has dramatically raised output per assembly line worker. For example around 80% of technological change has been process innovation.
– New products: For example, online banking and many new financial services are direct result of advances in micro processor based technologies.
A firm, which is unable to cope with the technological changes, may not survive.
Answer: the U.S. real interest rate and net exports will both rise.
Explanation: Due to the ongoing war abroad, there would be a reduction in production of goods and services in the affected countries and a rise in the production of goods and services in the safe haven country (US) leading to increased levels of export to meet the demand.
War affects investments negatively. As a result, investments are also moved to the US for safety. However, pressure on US producers and eventual shortage due to increased exports, would lead to inflation and increase in prices of goods and services. To mitigate these effects and to reduce the supply of money, government would increase interest rates.
This explains why both interest rates and export both rise.
Answer:
Please find the complete question and its solution file in the attachment.
Explanation:
Timing of shifts in Boerkian's net money assets
Date Particulars Stickles Exchange Rate Dollars
1-Jan Assets 
1-May Service Revenue 
1-Oct Operating Expenses 
31-Dec Net Assets 
31-Dec Net Assets at Current Exchange Rate on Dec.31 
31-Dec Gain
The profit is $6,800 for the subsidiary. The exchange rate is higher on 31 December.
