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3 years ago

Why are american firms moving manufacturing jobs overseas?

Business

1 answer:

strojnjashka [21]3 years ago

5 0

Cheap labor force...American businesses can save a substantial amount if they outsource.

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5 0

2 years ago

If a Starbucks tall latte cost $3.20 in the United States and 3 euros in the Euro area, then purchasing-power parity implies the

Nataliya [291]

Answer:

a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.

Explanation:

We can see in the example that the Euro is cheaper than the dollar in purchasing-power parity. More specifically, the exchange rate is .938 euros per dollar.

This is why it is more expensive to buy a tall latte in the U.S. than in Europe. The Euro is cheaper.

5 0

3 years ago

You are considering in investing one of the two options: Investment A requires a $255,000 upfront payment from you and generates

Ainat [17]

Answer:

Option (E) Never

Explanation:

NPV from Investment Project 1 = ($255,000) + $21,000 / (r)

NPV from Investment Project 2 = ($175,000) + $29,000 / (r)

The question says that find the number of years that equals the total return which means the NPV from both investments is equal:

($255,000) + $21,000 / (r) = ($175,000) + $29,000 / (r)

$21,000 / (r) - $29,000 / (r) = $255,000 - $175,000

-$8000 / r = $80,000

r = - 8000 / 80000 = -0.01 = - 10%

The negative sign shows that project A can not make a positive NPV that will be equal to that of project B and vice versa. It can also be illustrated by putting the value of r in "NPV from Investment Project 1"

NPV from Investment Project 1 = ($255,000) + 21000 / -0.01

= ($255,000) - $210,000 = ($465,000)

This shows that the company will have to make losses of $465,000 which is not possible because company will not select projects with negative NPVs.

3 0

3 years ago

Aeryn Soon is a potential investor of Hippy Dippy Inc.’s preferred stock, which is currently selling for $475 per share. Hippy D

Ksju [112]

Answer:

Yes she should purchase this preferred stock.

Explanation:

Return on investment as a percentage = return/capital invested * 100

For Aeryn to decide whether she should purchase this preferred stock, its return on investment should be higher than or equal to 8%. The return on investment of this preferred stock is $40/$475 * 100 = 8.42%, which is higher than her required return therefore she should purchase the preferred stock.

5 0

3 years ago

azra’s position as the manager of natural nutrition gives her the ________ to make many decisions during the course of a week, i

Mama L [17]

The appointment of Azra as manager gives her authority to make many decisions during the course of a week

Let understand that options includes accountability, authority, responsibility, delegation.

Basically, the main function of an organization manager is increase the efficiency or effectiveness of their employees, processes, projects, organizations etc

However, the four basic functions of manager includes effective planning, organizing, leading, and controlling of units in the company.

Therefore, Azra’s position gives her authority to make decision, assigns tasks, approve budget requests and market the business.

Learn more about Manager function here

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6 0

2 years ago