Answer:
Brief summary of the case:
The case deals about the evolution of kindle by Company A. When the company decided to introduce kindle, its price was $399 in 2007. Company A understood that to be successful against the huge competitors, kindle must be priced low. It must be highly reliable, many features and elegance must be provided in the design of kindle. "Company A- designed kindle in State C where the research and development expertise is available.
Market research firm "IS," estimated that the manufacturing cost of kindle is about $185. The expensive components of the kindle are the display used in the Electronic ink technology and wireless cord. Company A contracted with Country C's company to produce the display. A manufacturer in Continent A produced a wireless cord of $13. Many components were contracted to the different countries to reduce the cost of the kindle to be competitive. Now, kindle became the competitor to the massive companies.
Determine if the company has decided to manufacture all the components of Electronic reader K in Country U:
If Company had decided to manufacture all the components in Country U, then it would have been more expensive. Company A cannot sell that at an affordable price. Increase in the cost of the components would increase the overall cost of the Electronic reader K. The most important strategy of Company A is to minimize the cost of the product to increase the number of sales.
Increase in the manufacturing cost will dilute their competitive advantage and it increases the cost of the product. It will lower the sales and the buyers would prefer to use the competitors' products, which are cheaper.
Determine if the company has decided to manufacture all the components of Tablet F in Country U:
It would be expensive if they decide to manufacture the components in Country U. It will not affect the sales number like Electronic reader K. as Tablet F is multipurpose. People will prefer quality and specifications than price.
Conclusion:
Manufacturing in Country U would be expensive and it increases the overall cost of the product. It would affect sales of the products.
Answer:
Inbound logistics
Explanation:
Inbound logistics is the process of obtaining raw materials, and other goods and services, to the firm, while outbound logistics is the process of delivering the final goods and services from the firm to the customers.
In this case, the retail company is engaging in inbound logistics because it is procuring the raw materials from local farmers. Once these materials reach the firm, it can transform them into the agricultural produce and consumer produce that it sells.
The impact of war in international trade includes:
- restriction of goods to the countries
- conflict leading to non-agreement on trade
- low or no trade relationship between countries.
<h3>What is an international trade?</h3>
This refers to the economic transactions that are made or took place between countries.
Hence, any military conflict impact on international trade by causing a restriction of goods to the countries, conflict leading to non-agreement on trade, low or no trade relationship between countries etc.
Read more about international trade
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Answer:
TRUE
Explanation:
The influence of cultural on business behavior is broadly encompassing. Cultural impacts ranges from understanding employee behavior and employees management methodologies; i.e. how best to manage employees based on their values and priorities. It also impacts the functional areas of marketing and distribution: what people appreciate and the peculiarities of their environment. It also greatly impact and is a strong determinant factor of success when a company is taking a decision on how best to enter a new market.
When business ignore cultural factors they are guilty of ethnocentrism and could be orchestrating business failure.
Answer:
Option C. Debit Cash and credit Stock Investments
Explanation:
The reason is that in the equity method of recording the dividends receipts, it is always deducted from the stock investment and the relevant share of reported net income of the associate is added to the stock investment.
So mathematically,
Stock Investment Under Equity Method = Opening Value for the year + Share of Net Income - Dividend received
Stock Investment Under Equity Method = $300,000 + $160,000 * 25% + $60,000 * 25% = $325,000
The above treatment shows that the recording of dividends include credit to stock investment and the cash receipt is always debited.
So the double entry would be:
Dr Cash $15,000
Cr Dividends $15,000
So the option C is correct.
