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Fofino [41]
3 years ago
7

The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing

100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's . Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels.
Which of the following questions must be evaluated by OTC managers as a first step to exporting?
A) What are the risks involved in exporting OTC towels to Earth Waves?
B) Do Canadian towel companies have a high success rate when they export?
C) Will OTC save money on domestic marketing by exporting?
D) How can OTC adapt its distribution strategy in Canada?
Business
1 answer:
kompoz [17]3 years ago
6 0

Answer:

A)To evaluate The risks involved in exporting the OTC towels to Earth Waves

Explanation:

Based on the information given the questions that the manager have to effective evaluate as a first step to exporting the OTC towels to Earth Waves is to evaluate and weigh All THE POTENTIAL RISKS INVOLVED IN EXPORTING THE OTC TOWELS TO EARTH WAVES such as damage of goods or loss of good that may likely occur when the goods are in transit, fluctuations in the country currency in which the goods are been exported to ,The potential economic risks and instability that may arise as well as the delay in the payment of the exported goods among others.

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Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current lia
erastova [34]

Answer:

The internal growth rate is 4.36%

Explanation:

net income = 8.3%*386,400

                   = $32,071.20

net working capital = current assets – current liabilities

current assets – 37200 = 16700

                                        = $53,900

total assets = current assets + net fixed assets

                   = 53,900 + 391,500    

                   = 445,400

Then:

ROA = 53,900/445400

        = 0.072005

b = 1 - 48% = 0.52

internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)

                                 = 0.041763/0.958237

                                 = 4.36%

Therefore, The internal growth rate is 4.36%

7 0
3 years ago
Your only child will go to college 10 years from now. Your salary is $80,000 a year, and is expected to rise with inflation, whi
Cerrena [4.2K]

Answer:

60.60%

Explanation:

The computation of the percentage of your salary would go to pay for the first year of your child's college education is given below:

The salary after 10 years would be

= 80000 × 1.03^10

= 107513.31.

Now Similarly, the college fees after 10 years would be

= 40000 × 1.05^10

= 65155.78.

So, the percentage would be

= 65155.78 ÷ 107513.31

= 60.60%

6 0
3 years ago
Which of these is not a major guideline of the youth employment section of the fair labor standards act?
Kruka [31]

<span>Working experience may or may not be a not a major guideline of the youth employment section of the fair labor standards act. According to a DOL article, Children from 14 to 18 years old do have time limits and work range depends on their age and average of their body built. Still they have rules and regulations to follow.</span>

5 0
3 years ago
When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstruct
Vladimir [108]

Answer:

The correct answer is B) basic product.

Explanation:

The basic product is the first level of a product and is the good or service that covers a need.

It refers to the intrinsic product that covers the need. For example, it can be pure water to satisfy thirst, a car to be transported or telecommunications services to be able to communicate.

The basic product is what the generic of a satisfactory represents. However, even at this minimum level of product, the company should know that each consumer requires a product that meets their need, but this need is different in each.

7 0
3 years ago
Economists working for the united states have determined that the elasticity of demand for gasoline is 0.5. capcitymetro decides
Agata [3.3K]

Answer: Inelastic, Elastic

Explanation:

Demand for a good is inelastic when it is less than 1 and elastic when it is greater than 1.

Economists claim that for United States the elasticity is 0.5 that is the demand for gasoline is inelastic.  

Capacity metro increases price from $2.00 to $2.21 as a result demand falls from 70,000 rides to 61,000 rides.  

e= \frac{70,000 - 61,000}{70,000} * \frac{2.00}{2.21 - 2.00}

= = \frac{9,000}{70,000}*\frac{2}{0.21}

=1.22

Demand for capacity metro rides is elastic.  

7 0
2 years ago
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