What makes emerging markets attractive for international business? Discuss emerging markets as target markets, as platforms for manufacturing, and as sourcing destinations.
In: Economics
Provide an analysis of the competitive landscape of Tesla using Porter’s Five Competitive Forces. Structure your answer around:
1. Each of the competitive forces and its impact on Tesla’s business model
2. Ways that information technology is changing the basis of competition and the implications for Tesla.
In: Economics
Think about your place of work, your household or your school. Then, come up with 2 examples of efficiency (i.e, what you/they do well) and explain why you consider it efficient, AND 2 examples of inefficiency (i.e, what you/they do NOT do as well as you are capable of) and explain why it is inefficient. For the inefficiency, explain how you would solve each of those problems (correct the inefficiencies). When you reply to others, offer suggestions, input and advice - maybe you experienced something similar.
In: Economics
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Instruction: Complete your essay in a new MS Word document and upload to iCollege. Your answer should demonstrate your ability to apply the concepts learned in our class. The word count of the text that includes your “own words” should be at least 500 words (about 700 max.). The text should be typed double-spaced using a 12-point font size in Times New Roman.
Suggested Answer: Students should discuss the advantages and disadvantages of division of labor. Someone specializing in the execution of a single operation might master it, but might be quite inadequate at others. Remember the famous Bruce Lee quote, “I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.” Related concepts: Multiskilling, job rotation, job enrichment, assembly line. |
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In: Economics
How did the Factory System affect the world economically?
please cite references
In: Economics
1. Suppose that the model of the economy is given by
Y = C + I + G + X
C = a + b Yd
Yd = (1 – t)Y
X = g – mY
a. Derive the equilibrium GDP (Y) and the expenditure multiplier (Me ) expressed in general notations.
b. Suppose I = $900 billion, G = $1,200 billion, a = 220, b = 0.9, t = 0.3, g = 500, and m = 0.1. Solve for the equilibrium GDP (Y) and the expenditure multiplier (Me ) using your answers to part a.
c. Is the expenditure multiplier (Me ) with variable import spending (refer the numerical solution of Me from part b) larger or smaller than the expenditure multiplier (Me ) with fixed import spending? In addition to an algebra comparison, provide an intuition with your answer. Hint: The expenditure multiplier (Me ) with fixed import spending (i.e. constant X)) is 1 1−?(1−?) , in the problem, b = 0.9, t = 0.3.
d. Solve for private saving (Sp), government saving (Sg), and the rest of the world saving (Sr) when investment spending (I) is $900 billion.
2. Consider following simple closed economy (X = 0) and all taxes are fixed (a constant T):
Y = C + I + G
C = a + b Yd
Yd = Y – T
a. Derive the equilibrium GDP (Y), the expenditure multiplier (Me ), and the fixed tax multiplier (MT ) expressed in general notation.
b. Suppose government changes government spending G and fixed taxes T by the same amount (G = T). Derive the balanced budget multiplier, Y/G with G = T, using solutions of Me and MT from part a. [Hint] Y = meG + mTT
c. Illustrate the effect on income Y of a balanced budget increase in government spending and taxes (i.e., G=T>0) on the income expenditure (45 degree) diagram. Fully label your diagram.
In: Economics
There is a market operating for two periods. In the first period, there is only an incumbent firm, and an entrant may enter in the second period. The demand function each period is p = 20 − Q, where Q is the total quantity in the market. The per period cost function of each firm is c(q) = 9 + 4q. There is no discounting. Firms choose quantities.
(a) Find the monopoly outcome with these demand and cost
functions.
(b) Because of some technological constraint, the incumbent cannot
choose different quantitie in the two periods: qI = qI = qI . The
entrant observes the incumbent’s quantity qI and decides if to
enter and, if yes, how much to produce. Find the optimal choice of
the entrant for any q.
(c) Suppose that the entrant will enter. Find the optimal quantity
of the incumbent.
(d) Suppose now that the entrant will enter only if it makes
positive profits. Find the subgame-perfect Nash equilibrium.
In: Economics
Please summarize some information about geography, history, demography, and socio-politico-economic aspects of the Turkey. Please do NOT copy and paste from another source. Please write at least 500 words.
In: Economics
In: Economics
The world comprises two countries, A and B. There is only one good, whose price is normalized to 1; hence nominal and real measures coincide. These two countries differ with respect to their production technology. In particular, ???? = 10 − 0.8?? and ???? = 7 − 0.7??, where ???? denotes the marginal product of capital and ?? the capital stock in country i = Α, Β. The total capital stock in the world is 10 units.
a) The initial allocation of capital is ?? = 5 and ?? = 5. Find each country’s total income as well as labor and capital income. What is the world income? [Mark: 0.75]
b) Next, consider the case where there is free capital mobility. Find the capital allocation between the two countries, each country’s total income, as well as labor and capital income. What happens to world income? Explain your answers. [Mark: 0.75]
c) Assume now that, succumbing to domestic pressure, the government of country A imposes a 30% tax on capital income. Show graphically the equilibria before and after taxation. Find the new capital allocation between the two countries, total income, tax revenue, as well as labor and net capital income in each country. Explain your answers. [Mark: 1.5] Note: Round your answers to the second decimal point.
In: Economics
In: Economics
A) Provide a PESTLE Analysis for the firm
B) Provide a SWOT Analysis for the firm
Freemark Abbey Winery
Earlier in September, William Jaeger, a member of the partnership that owned Freemark Abbey Winery, had to make a decision: should he harvest the Riesling grapes immediately or leave them on the vines despite an approaching storm?A storm just before harvest is usually detrimental, often ruining the crop. A warm, light rain, however, will sometimes cause a beneficial mold, botrytis cinerea, to form on the grape skins. The result is a luscious, complex, sweet wine, highly valued by connoisseurs.
The Winery
Freemark Abbey is located in St. Helena, California, in the northern Napa Valley. The winery produces only premium wines from the best grape varieties. Of the 25,000 cases of wine bottled each year (about the same as Chateau Lafite-Rothschild), most were Cabernet Sauvignon and Chardonnay. About 1,000 cases of Riesling and 500 cases of Petite Syrah were also bottled. (A case contains twelve 750-ml bottles.)
The Napa Valley extends for 30 miles, from Calistoga in the north to Napa in the south. The average temperature decreases as one moves south, closer to San Francisco Bay and the cold ocean waters. Freemark Abbey’s grapes come from an ideal climate in the central and southern parts of the valley.
Winemaking
Wine is produced when the fruit sugar, which is naturally present in the juice of grapes, is converted to yeast, through fermentation, into approximately equal molecular quantities of alcohol and carbon dioxide. Sparkling wines excepted, the carbon dioxide is allowed to bubble up and dissipate. The wine then ages in barrels for one or more years, until it is ready for bottling.
By various decisions during wine-making – for example, the type of wooden barrel used for aging – the vintner or winemaker influences the style of wine produced. The style adopted by a particular winery depends mainly on the owners’ preferences, though it is influenced by marketing considerations. Usually, as the grapes ripen, the sugar levels increase and the acidity levels decrease. The winemaker tries to harvest the grapes when they have achieved the proper balance of sugar and acidity for the style of wine sought. The ripening process is variable, however, and if the weather is not favorable, the proper balance might never occur.
Several different styles of Riesling (more accurately, Johannisberg Riesling) are on the market. If the grapes are harvested at 20% sugar, the wine is fermented “dry” (all the sugar is converted to alcohol and carbon dioxide) or “near dry.” The resulting wine, at bout 10% alcohol, is light bodied. If the grapes are harvested at 25% sugar, the winemaker can produce a wine with the same 10% alcohol but with 5% residual sugar; this wine is sweet and relatively full bodied.
A third and rare style results when almost-ripe Riesling grapes are attacked by the botrytismold. The skins of the grapes become porous, allowing water to evaporate while the sugar remains. Thus, the sugar concentration increases greatly, sometimes to 35% residual sugar, has extraordinary concentration, and the botrytisitself adds to the wine’s complexity. Freemark Abbey had already produced a botrytisedRiesling from an earlier vintage.
Jaeger’s Decision Problem
From the weather reports, Jaeger concluded that there was a 50 – 50 chance that the rainstorm would hit the Napa Valley. Since the storm had originated over the warm waters off Mexico, he thought there was a 40% chance that, if the storm did strike, it would lead to the development of the botrytismold. If the botrytisdid not form, however, the rainwater, which would be absorbed into the grapes through the roots of the vines, would merely swell the berries by 5 – 10%, decreasing their concentration. This would yield a thin wine that would sell wholesale for only about $2.00 per bottle, about $0.85 less than Jaeger could obtain by harvesting the not-quite-ripe grapes immediately and eliminating the risk. Freemark Abbey always had the option of not bottling a wine that was not up to standards. It could sell the wine in bulk, or it could sell the grapes directly. These options would bring only half has much revenue, but would at least avoid damaging the winery’s reputation, which would be risked by bottling an inferior product.
If Jaeger decided not to harvest the grapes immediately in anticipation of the storm, and the storm did not strike, Jaeger would probably leave the grapes to ripen more fully. With luck, the grapes would reach 25% sugar, resulting in a wine selling for around $3.50 wholesale. Even with less-favorable weather, the sugar levels would probably top 20%, yielding a lighter wine selling at around $3.00. Jaeger thought these possibilities were equally likely. In the past, sugar levels occasionally failed to rise above 19%. Moreover, while waiting for sugar levels to rise, the acidity levels must also be monitored. When the acidity drops below about 0.7%, the grapes must be harvested whatever the sugar level. If this happened, the wine would be priced at only about $2.50. Jaeger felt that this even had only about a 0.2 probability.
The wholesale price for a botrytised Riesling would be about $8.00 per bottle. Unfortunately, the same process that resulted in increased sugar concentration also caused a 30% reduction in the total juice. The higher price was, therefore, partly offset by a reduction in quantity. Although fewer bottles would be produced, there would be essentially no savings in vinification costs. The costs to the winery were about the same for each of the possible styles of wine and were small relative to the wholesale price.
In: Economics
In: Economics
As a leading business economist in the country, you were requested to present a detailed research report during a panel discussion at the textile industry Imbizo suggested in the article on how anti-competitive industry practices presents themselves in the sector. Present your report in assignment format. In your report, apply your knowledge of market structures and trade to discuss some of the industry practices and how they could be restricting growth of the textile sector. [15 marks]
In: Economics