How can COVID-19 crisis affect in the future of globalization?

Consider a Ricardian model. There are two countries called Australia and New Zealand and two goods called beer and cheese. In Australia the unit labour requirement for a beer is 6 hours and for a cheese is 12 hours. In New Zealand the unit labour requirement for a beer is 4 hours and for a cheese is 1 hour. Australia has an endowment of 3600 hours of labour. New Zealand has an endowment of 400 hours of labour.

1. Draw a production possibility frontier (PPF) diagram for Australia and a PPF diagram for New Zealand (separate diagrams please). Cheese must be on the vertical axis and beer must be on the horizontal axis.

2. For both countries state the opportunity cost of producing a beer.

3. Suppose now that we have trade between the countries and the world price is 1 cheese for 1 beer. For each country draw in the budget constraint. For each country label the production point on the diagram.

4. Denote the world prices in dollars as PB and PC respectively. Denote the respective quantities of beer and cheese consumed in New Zealand (following,trade, of course) as DB and DC . Using this notation, write out the budget constraint for New Zealand. Rearrange this budget constraint so that it is clear that the ratio of these world prices is reflected by the slope of the budget constraint. [ DC should be on the left hand side and the rest of the stuff should be on the right hand side.]

5. While the ratio of prices is apparent from Question 3, we will assume from here on that the price of beer is $1 and the price of cheese is $1. If 300 beers are consumed in New Zealand, how many cheeses will be consumed in New Zealand? Now if only 200 beers are consumed, how many more cheeses will be consumed?

6. For both countries calculate the hourly wage rate (with international trade).

List and explain the two types of cities that exist in Texas.

Ivy bought some shares of stock and, over the next year, the price per share increased by 5 percent, while the price level went up by 3%. Before taxes, Ivy experienced

a. both a nominal gain and a real gain, and Ivy paid taxes on the nominal gain.

b. both a nominal gain and a real gain, and Ivy paid taxes only on the real gain.

c. a nominal gain, but no real gain, and Ivy paid taxes on the nominal gain.

d. a nominal gain, but no real gain, and Ivy paid no taxes on the transaction.

a. Distinguish between demand and quantity demanded. Do the same for supply and quantity supplied.

b. Distinguish price ceiling and price floor. List and discuss some of the problems associated with price floor and price ceiling. What are the major problems that will tend to arise if there are legal limits on the movement of prices? How do legal controls on prices lead to corruption?

27. The reserve ratio is the

Multiple Choice

• percentage of total deposits that are held as bank reserves.

• number of deposit dollars the banking system can create.

• fraction of deposits that banks hold as excess reserves.

• percentage of excess reserves held by banks.

28. The discount rate is the interest rate charged by

Multiple Choice

• the Federal Reserve when it lends money to private banks.

• a private bank when it lends money to commercial customers.

• a regional Fed bank when it lends money to another regional Fed bank.

• a private bank when it lends money to another private bank.

29. If the Fed is concerned about inflation, it should

Multiple Choice

• buy bonds or reduce the discount rate.

• buy bonds or raise the discount rate.

• sell bonds or reduce the discount rate.

• sell bonds or raise the discount rate.

Once England decided to create an overseas empire, it did so with impressive speed. Explain the motives behind English expansion to the North American continent to the North American continent, including the Great Migration.

Contrast the rights of public employees with private sector employees to organize and bargain collectively. What authority do the unions have in each sector? Do you feel there is a tendency in your home state to favor the rights of public employees or the private sector? Are unions celebrated, or is the emphasis on the right to work? Share your rationale.

Suppose that the money supply increases in the short run, this will increase prices according to __________.

Group of answer choices

both the short run Phillips curve and the aggregate demand and aggregate supply model

neither the short run Phillips curve not the aggregate demand and aggregate supply model

the short run Phillips curve but not the aggregate demand and aggregate

the aggregate demand and aggregate supply model but not the short Run Phillips curve

If the Federal Reserve decreases the rate at which it increases the money supply, then unemployment is higher in __________.

Group of answer choices

the long run and the short run

the long run but not the short run

the short run but not the long run

neither the short run nor the long run

Values Rule at Patagonia

Patagonia is a California-based company that makes clothing and gear for outdoor sports like hiking and

climbing. It has been called “The Coolest Company on the Planet” and it has a consistent track record of

being voted one of the best companies to work for. Patagonia employees are among some of the most

passionate and long serving in the industry. In fact, with an annual turnover rate of only 4 percent, so few

people leave the company that job seekers are hard pressed to find any opportunities. However, when

the company does have a position to fill, it goes about selecting candidates very carefully.

Patagonia places its commitment to protect and preserve the environment and its resources over

anything else. This mind set is what drives the company and the people who work there. As Casey

Sheahan, CEO and president of Patagonia, observes, “It is critical that our employees, whether they are

new hires or long standing employees, are totally in line with our philosophy and values.” It is not enough

for an applicant to simply enjoy outdoor activities. Patagonia looks for employees who are fanatical about

protecting the environment and who are passionate about their hobbies and interests. The company looks

carefully at the values, attitudes, and behaviours of potential employees in an effort to bring in new talent

that will help the organization as a whole and be truly representative of the Patagonia brand.

Patagonia uses a hiring process that is a mixture of both traditional and nontraditional approaches.

Résumés are reviewed and sorted, and candidates are screened in-person and over the phone.

However, in order to find an employee who will be the best fit for the organization, candidates also

participate in extensive group interviews. The purpose of this strategy is to learn as much about the

candidate’s background as possible. As Lu Setnika, human resources director at the company, explains,

group interviews provide an opportunity for Patagonia employees to test and assess whether or not a

candidate would be comfortable working within the organization’s value-driven and collaborative culture.

By having a number of informal conversations together, both the company and the candidates take time

to get to know each other. This helps Patagonia maintain a base of employees who are highly engaged

and who identify with the organization on an emotional level.

Patagonia’s mission statement is to build the best product, cause no unnecessary harm, and use

business to inspire and implement solutions to environmental crises, and this mission drives the

company’s corporate strategy. The apparel and gear made by Patagonia employees are secondary to the

company’s commitment to resolving environmental issues. Jill Dumain, Patagonia’s director of

environmental analysis, explains that the return on investments with environmental protocols is actually a

much more efficient way of doing business from a cost standpoint. The company harnesses the strengths

and potential of customers who are aware of the plight of the environment and willing to take action. In

this way, Patagonia promotes and encourages a lifestyle that honours nature, wildlife, and biodiversity.

As illustrated in its Common Threads Initiative Video, Patagonia’s message is very clear: The planet’s

resources are being depleted at a level that cannot be sustained. Urgent change is needed to allow

nature time to heal. With these facts in mind, the company urges customers to think carefully and buy

only what they “deeply need” and not “vaguely want.” Company founder, YvonChinourd, explains that

“We are the first company to ask consumers to take a formal pledge and be partners in the effort to

reduce consumption and keep products out of the landfill or incinerator.” Patagonia’s Common Threads

Pledge states that Patagonia agrees “to build useful things that will last, to repair what breaks and recycle

what comes to the end of its useful life.” Customers who take the pledge agree “to buy only what [they]

need and will last, repair what breaks, reuse (sell or share) what [they] longer need and recycle

everything else.”

Following its belief that recycling is one key factor in sustaining the environment, Patagonia partnered

with eBay to create its Common Threads Initiative Store. This new approach enables and encourages

customers who have taken the Common Threads Pledge to take an active role in the partnership.

Patagonia says it will not receive any of the profits associated with the Common Threads Initiative

Storefront.

Patagonia recognizes and supports employees who engage in projects as environmental activists. In

1993, the company started its Patagonia Employee Internship Program. It provided staff with an

opportunity to leave their jobs for up to four weeks to work for an environmental group they identified with.

Patagonia agreed to provide full pay and benefits to employees during their absence from the company.

More than 850 employees have taken part in the program. Interns have helped to protect sea turtles in

Kenya, pika in Colorado, and sage grouse in Nevada. Employees who participate in the program further

strengthen Patagonia’s mission. Their stories and experiences help to inspire other employees and in the

process work to enrich and strengthen Patagonia’s collaborative culture. In some cases, employees leave

the company to concentrate all of their efforts on preserving the environment. Patagonia applauds

employees who leave the company to devote all of their time in support of environmental initiatives. The

company views these kinds of employee resignations as organizational successes.

On April 20, 2010, BP’s Deepwater Horizon oil rig exploded in the Gulf of Mexico. That began what is now

known as the biggest oil spill in history, with at least 185 million gallons of crude pouring into the Gulf.

Patagonia responded to the disaster by sending seven teams of employees to seven communities in the

Gulf. For one week, employees went door to door and asked residents along the coast in southern

Louisiana towns how the oil spill had impacted them in terms of health, culture, and finances. Information

from the survey helped to create a web-based Oil Spill Crisis Map that the government and wildlife

agencies could use to document the impact of the disaster.

Patagonia’s organizational culture places it in a leading role as a company devoted to the preservation

and protection of the environment. Its unique approach of using and uniting its employees and customers

in pursuit of its mission offers hope and guidance to others who seek to live as citizens of the earth.

Discussion Questions

1. Explain the difference between “values,” “attitudes,” and “job satisfaction.” How does each pertain to Patagonia and its employees? Give examples.

2. What is the difference between terminal and instrumental values? Which of the terminal andinstrumental values apply to Patagonia’s employees?

3. Patagonia experiences a high level of organizational commitment from their employees, which isdemonstrated by their low annual turnover rate of 4 percent. Describe the three types of organizational commitment and explain how each pertains to Patagonia.

4. Patagonia gives employees paid time off to pursue their environmental passions. From a businessperspective, do you think this is a good idea or not? How do you think it impacts Patagonia as anorganization? Explain.

5. Patagonia has incorporated group interviews into their hiring process as they feel this is a good way “to assess whether or not a candidate would be comfortable working within the organization’s value driven and collaborative culture.” Do you agree with this assessment? Explain.

What are the features, characteristics, and consequences of globalization on business?

Describe PETS analysis for case study zero wage increase again (By Karen Macmillian)

Could you please explain it briefly?

What can you conclude about the price elasticity of demand from each of the following statements? (Is it: perfectly elastic, elastic, unit elastic, inelastic, perfectly inelastic)

a. "The pizza delivery business is very competitive in this town. I'd lose half my customers if I raised the price by as little more than 10%."

b. "I own the only chicken farm in Hong Kong that produces organic free-range eggs. I recently increased my production by 20%, and found that the price that I could sell the eggs at dropped by 10%."

c. My professor has required the use of the Krugman textbook for the class. I have no choice but to buy this book."

d. No matter what the price is, I always spend a total of exactly $100 per month buying coffee beans."

please give me answers with detailed explanations. thank you.