Answer:
The explanation of the terms of the option contract change is below
Explanation:
a. Every call option contract will cover more shares
= 500 × 1.1
= 550
for computing the 1.1 (1 + 10%)
The strike price will be reduced for each share to
= 40 ÷ 1.1
= $36.364
b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place
c. Each contract call option will cover more shares
= 500 × 4
= 2,000
The strike price will be reduced for each share to 40 ÷ 4
= $10
Shrink nations work force
Answer:
Business risk.
Explanation:
Business risk (uncertainty associated with the ability to forecast EBIT due to factors such as sales variability and operating leverage).
Answer:
<h2>In this case,the correct answer is option b. or real output rose and price level fell.</h2>
Explanation:
GDP Deflator in Macroeconomics,shows the inflation or deflation rate in a country within the specific time period.Hence,it measures the changes in the average price level of goods and services in any country or economy over a particular period of time.It is mathematically calculated by dividing the nominal GDP of the country or economy by its real GDP.Now,a decrease in the nominal GDP relative to the real GDP or GDP deflator implies an deflationary impact or an increase in the average price level of goods and services in the economy and vise versa.Note that in this case both the nominal GDP and GDP deflator decreased from 2009 to 2010 which advocates that the price level in the economy fell(deflation) and the real output or GDP rose or increased due to deflationary impacts as reflected by the decline in GDP deflator.
Answer:
Multinational enterprises (MNEs)
Relationship Change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations:
This move means that Indian and Chinese companies would be competing with my local small firm. The MNE may be looking for cheaper prices for my company's products and services, which the Indian and Chinese companies would more efficiently supply it. My firm may be on the precipice of liquidating if this MNE is our major customer. My firm must move fast to become more competitive by differentiating our products and services with better quality and perhaps reduced production costs, to enable it compete more favorably with the Indian and Chinese competitors. Otherwise, we may regard the relationship as nearing its end and prepare for other opportunities with other companies.
Explanation:
Globalization reduces national boundaries by integrating national economies into a globalized economy, thus enabling companies to compete globally for financial resources, goods, and services. When Globalization 1.0 happened, countries were globalized and the world became a global village. When Globalization 2.0 from which the G7 profited largely, companies were globalized. With the current Globalization 3.0, individuals are being globalized, and the highest beneficiaries are Indian and Chinese nationals who appear better prepared to take on the world, garner most of the important resources to themselves, and call the shots from the boardrooms. An example is Microsoft's current CEO, Satya Nadella, who is an Indian-American.
