Answer:
The correct answer is the option: False.
Explanation:
To begin with, if a company has one key customer then the most common situation is that the company is more likely to be in risk if the organization losses that customer, meanwhile the other companies that have more clients that only an important one are likely to survive longer due to the fact that if one client abandon it then that business will have many others in which to support the sales. In the other case, where the company only has one key customer then in the case that the client abandon, the company will have to struggle and find a new one sooner in order to keep the sales.
So we first need to find the profit per unit, which means we need to find the number of units sold
profit = (sales price* quantity) - variable cost*quantity - fixed costs
plug in what we know
300,000 = (20q) - 12q-25,000
275,000 = 8q
q= 34,375 units produced. Then take profit/units = 300,000/34375 = 8.73 profit per unit
Now if we sell 5,000 more units, we would have 8.73*5000 = 43,636.36 additional profit
Answer:
Eclectic paradigm
Explanation:
The eclectic paradigm of international production or OLI (ownership, location and internationalization) model is used by companies that are evaluating whether to engage in foreign direct investment (or internalization) or not.
It was developed in the 1970s and it is based on the premise that if it is cheaper for a company to produce internally, it will not seek to to produce in foreign countries. This analysis is based on three key factors:
- ownership advantages: are the ownership rights of the company upheld in foreign countries
- location advantages: does the company benefit form doing business in another specific country
- internationalization advantages: is it better for the company to produce internationally than domestically
The simple money multiplier if the banks in Ruritania have a required reserve ratio of eight percent will be 12.5.
<h3>What is the significance of money multiplier?</h3>
Money multiplier can be referred to or considered as the total derived after division, finding the reciprocal of the required reserve ratio of an any commercial bank or any financial institution as such. In the above case, the money multiplier will be computed as 1 / 8 × 100 = 12.5.
Therefore, the significance regarding the simple money multiplier has been aforementioned.
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<span>to obtain a product from another country </span>