Answer:
True (A)
Explanation:
Business can ensure product standardization for different markets with careful attention to controlling cost and quality. Costs are inevitably in a business, however, they can be managed to the barest minimum.
Answer:
Global account structure.
Explanation:
Global account structure can be regarded as structure that enables the account that has been globally standardised or having compatible products as well as services in various locations at internationally level. Global Account Management enables Global account managers to navigate along with their teams the internal as well as external challenges. It should be noted that structure used to supply customers (often other MNEs) in a coordinated and consistent way across various countries is Global account structure.
Answer:
a. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs.
b. Who has the comparative advantage in the production of shirts? What about for computers?
- China has the comparative advantage in the production of shirts, while the US has the comparative advantage in the production of computers.
c. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graphs. Which country would benefit from trade?
- China would export 50 million shirts in exchange for 5 million computers (or more if they can). Trade would benefit the US since it will only need to trade 5 million computers in exchange for 50 million shirts, and it will still have 15 million computers that it can consume or trade with come other country.
d. Explain at what price of computers (in terms of shirts) the two countries might trade.
- the minimum and maximum prices would be 5 to 10 shirts per computer. If the price of shirts per computer is 10 or near 10, then the US wins more. If the price of shirts per computer is 5 or near 5, then China wins more.
Explanation:
opportunity cost of producing 1 shirt in the US = 20/100 = 0.2 computers
opportunity cost of producing 1 computer in the US = 100/20 = 5 shirts
opportunity cost of producing 1 shirt in China = 10/100 = 0.1 computers
opportunity cost of producing 1 computer in China = 100/10 = 10 shirts
without trade:
- total production of shirts in the US = 50 million
- total production of computer in the US = 10 million
- total production of shirts in China = 50 million
- total production of computer in China = 5 million
with trade:
- total production of computers in the US = 20 million
- total production of shirts in China = 100 million
Answer: b. The duration of its liabilities must equal the duration of its assets
Explanation:
Since the company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk, then the duration of its liabilities must equal the duration of its assets.
It should be noted that when the duration of its liabilities is shorter than the duration of its assets, the duration gap is positive and when there's a rise in interest rate, the worth of assets will be affected more.
When duration of its liabilities is longer than the duration of its assets, the duration gap is negative and when there's a rise in interest rate, the worth of liabilities will be affected more.
Finally, when the duration of its liabilities is equal the duration of its assets, its equity is unaffected by interest rate risk.
Answer:
CPI for the current year = 200
Explanation:
Given;
Contents in market basket
20X, 30Y, and 50Z
The current-year prices for goods
X = $2
Y = $6
Z = $10
The base-year prices are
X = $1
Y = $3
Z = $5
Now,
Total cost of market basket in the current year
= ∑ (Quantity × Price)
= 20 × $2 + 30 × $6 + 50 × $10
= $40 + $180 + $500
= $720
Total cost of market basket in the base year
= ∑ (Quantity × Price)
= 20 × $1 + 30 × $3 + 50 × $5
= $20 + $90 + $250
= $360
also,
CPI for the current year =
or
CPI for the current year =
or
CPI for the current year = 200