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Morgarella [4.7K]
2 years ago
14

Kowabunga was a US based beach clothing and gear company. The owner of the company wanted to expand into markets in Mexico, Aust

ralia and Fiji. The company compared the emerging markets to see which had the highest growth rates. Which external business environment did the company evaluate for its expansion?
Business
1 answer:
Digiron [165]2 years ago
5 0

Based  on the given details the external business factor environment that did the company evaluate for its expansion is sociocultural.

Socio-cultural as a business external factor has to do with the environment culture or customs and belief as well as the type of fashion trend they have in vogue.

For a clothing company to be successful the consumer, their income level or wealth, growth rate and the environment  at large has to be put into consideration.

The company has to as well evaluate the market activities of the country as this can help to influence their decision when trying to expand into another country market as well as their strategic goals when introducing their product into an another country.

Inconclusion the external business factor environment that did the company evaluate for its expansion is sociocultural.

Learn more about sociocultural here:brainly.com/question/24769813

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3 years ago
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Explanation:

According to different theories about trade specialization, a company or even a country should specialize in producing only those products that they can make better than their competition, i.e. have a comparative or absolute advantage in their production.  

In this case, since Company R has a comparative advantage in the production of peanut butter, it should specialize in producing only that. In case they need jam, they should trade with Company Q in order to get some jam. Eventually Company Q  will only produce jam since they have a comparative advantage in jam production.

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3 years ago
"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o
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4.5%

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Required Return (Re) = Rf +(Rm-Rf) B

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3 years ago
The cob Douglas production function is given by Q(K,L)=AK^1.4*L^1.6
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Part a) The Cob Douglas production function is given as:

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To show that this function is homogeneous with degree 3, we introduce be a parameter, t.

Q(tK,tL)=A(tK)^{1.4} (tL)^ {1.6 } .

Using properties of exponents, we on tinder:

Q(tK,tL)=At^{1.4}K^{1.4} t^ {1.6 }L^ {1.6 } .

This implies that:

Q(tK,tL)=t^{1.4} \times t^ {1.6 }(AK^{1.4} L^ {1.6 } )

Q(tK,tL)=t^{1.4 + 1.6}(AK^{1.4} L^ {1.6 } )

Simplify the exponent of t to get;

Q(tK,tL)=t^{3}(AK^{1.4} L^ {1.6 } )

Hence the function is homogeneous with degree, 3

Part b) To verify Euler's Theorem, we must show that:

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L}=3AK^{1.4}L^{1.6}

Verifying from the left:

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =K(1.4AK^{0.4} L^{1.6}) + L(1.6AK^{1.4} L^{0.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =1.4(AK^{1.4} L^{1.6}) + 1.6(AK^{1.4} L^{1.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =(1.4 +  1.6)(AK^{1.4} L^{1.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =3(AK^{1.4} L^{1.6})

Q•E•D

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