5) 1) one of the reason why it can be mentioned that a country can choose to be multinational because of the fact that if the production is carried out in the host country as well them that tax for that particular good might reduce as a result of which the demand can be triggered in the host country as well where this can be considered as horizontal multinational case
2) another main reason why it can be mentioned that a country can choose to be multinational is the advantage of a particular input factor such as if a United States company is investing in China then it means that it is taking the advantage of cheap labour in China which is an input tractor so that the cost of production goes down where this can be considered as the vertical multinational it fulfills the role of a supplier.
3) another reason why a country can choose is the existing demand conditions and weak competition for the particular product in the country which might be luring for a country to make more profits and that is why it can decide to enter that market.
5 (20 points) Give three different reasons why a firm chooses to be a multinational, i.e.,...
give two different reasons why Hayek expected an economic collapse in every socialist country. Each reason (A and B) must use economic fundamentals to demonstrate the problems expected by Hayek. (note: It is not sufficient simply to state that in the late 20th century many socialist countries collapsed, proving Hayek’s long term forecast. You must give two of Hayek’s reasons.)
give two different reasons why Hayek expected an economic collapse in every socialist country. Each reason (A and B) must use economic fundamentals to demonstrate the problems expected by Hayek. (note: It is not sufficient simply to state that in the late 20th century many socialist countries collapsed, proving Hayek’s long term forecast. You must give two of Hayek’s reasons.)
CH 17: 1. Multinational corporations Why do companies go global? Multinational corporations operate in locations across the world. Each company has its own motive for its presence in different countries. Consider the following case: RTE Telecom Inc. is an American company that produces high-tech electronics. Its managers have decided to move some of its production facilities to Japan in an attempt to circumvent certain governmental regulations. A: Which of the following best describes the reason RTE Telecom Inc. has decided...
1. Give the three reasons that explain why the division of labor increases an economy’s level of production. 2. What are three reasons to study economics? 3. Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert. 4....
1. Give the three reasons that explain why the division of labor increases an economy’s level of production. 2. What are three reasons to study economics? 3. Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert. 4....
usion (24 points) Two firms are playing a repeated Bertrand game infinitely, each with the same marginal cost 100. The market demand function is P-400-Q. The firm who charges the lower price wins the whole market. When both firms charge the same price, each gets 1/2 of the total market. I. Coll A. (6 points) What price will they choose in the stage (only one period) Nash equilibrium? What price will they choose if in the stage game (only one...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
Adam Smith, who was also a moral philosopher, long observed that an individual “by directing . . . industry in such a manner as its produce may be of the greatest value, . . . intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than...
1. What is the argument pattern of the following passage (i.e., only the very last inferential step)? Note that the component statements have been broken down and numbered for you. (1) <Composites hold the key for new aircraft and spacecraft designs.> This is the case because (2) <They are stronger than aluminum> and (3) < [they are also] lighter than aluminum.> (Assume for the purposes of this exercise that material lightness and strength are both required together to make new...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (are) true? Table 1 Unit Labour Requirements T-shirt Brandy 4 hours 12 hours 6 hours 12 hours United States France A) The pretrade price ratio in France is 1 brandy - 2 T-shirts. B) The US pretrade price ratio is 1 brandy - 4 T-shirts. C) The US pretrade price ratio is 1 T-shirt = 1/3 brandy. D) The...