Question 4 [14]Explain the meaning of the term ‘rent seeking’ and illustrate graphically how it could undermine efficiency in the economy.

Subject: Governmental economics 20A

“Government-owned monopolies are less X-efficient than private monopolies and have less ofan incentive to initiate and implement cost-saving innovations than their profit –driven privatecounterparts.” (Calitz. E, Siebrits, K. and T. Steenkamp: 2019. Public Economics, 7thedition:70)Discus this statement by referring to the current situation at Eskom

2. Subject: Governmental economics 20A

Assess the influence of economic policies on a business organisation.

What are the common features of developing countries?

Why was china considered most polluted country in the world and how did china reduced it some extent?

What is grameen bank and what is its contribution tackling rural poverty?

What is FDI and how it may affect local economy?

Which is the correct answer?

A duopoly faces the demand curve D(p) = 30 - .5p. Both firms in the industry have a total cost function given by C(q) = 4q. Suppose that firm 1 is a Stackelberg leader in choosing its quantity first. Firm 1’s profit function can be written as

Explain your answer/Show how you arrived at the solution:

QUESTION ONE

Carson Company is a large manufacturing firm in Accra that was created 20 years ago by the Carson family. It was
initially financed with an equity investment by the Carson family and 10 other individuals. Over time, Carson Company
has obtained substantial loans from finance companies and commercial banks.
The interest rate on the loans is tied to the
market interest rate and is adjusted every six months. Thus, Carson’s cost of obtaining funds is sensitive to interest rate
movements. It has a credit line with a bank in case it suddenly needs additional funds for a temporary period. It has
purchased Treasury securities that it could sell if it experiences any liquidity problems.

Carson Company has assets valued at about 50 million cedis and generates sales of about 100 million cedis per year. Some
of its growth is attributed to its acquisitions of other firms. Because of its expectations of a strong Ghanaian economy,
Carson Company plans to grow in the future by expanding its business by making more acquisitions. It expects that it will
need substantial long-term financing and plans to borrow additional funds either through loans or by issuing bonds. It is
also considering issuing stocks to raise funds in the next year. Carson closely monitors conditions in financial markets
that could affect its cash inflows and cash outflows and thereby affect its value.

i. In what way(s) is Carson a surplus unit? (2marks)

ii. In what way(s) is Carson a deficit unit? (2marks)

iii. How might finance companies facilitate Carson’s expansion? (4marks)

iv. How might commercial banks facilitate Carson’s expansion? (4marks)

v. Why might Carson have limited access to additional debt financing during its growth phase?

vi. How might Carson use the primary market to facilitate its expansion? (2marks)

vii. How can Carson use the secondary market?

viii. Explain why Carson would be interested in future interest rate movements? (2marks)

NB: Each explanation should not exceed 200 words

Please refer to CONCEPTS and THEORIESs in the global business context and real world example(s) from the course.

Q4. Use examples to illustrate what is decoupling . Why is decoupling an urgent concern? Describe the relationship between Decoupling & the Green Economy. What is the major obstacle faced by decoupling?

Q5. Describe and discuss 4 kinds of ethical issues in business . Discuss the Stages of Moral Development (Kohlberg’s theory) .

The Chinese model for economic development is appreciated by many scholars and policy makers. What two arguments can you put forward to support the Chinese model.

Do you think that Disney has grown from internal or external economies of scale?

Assuming that Disney is similar to other multinationals what do you conclude when you read about the slow economic growth rate in the U.S. compared with the growth rate of the multinationals of the past few decades? What about wage growth rate?

4.   Policymakers have long debated whether employees should be required to join a union. Federal law allows unions to negotiate security clauses in collective bargaining. However, the Taft-Hartley Act of 1947 allows states to pass right-to-work laws to make security clauses illegal. The year is 1946 and you are the leader of a small craft union in Missouri. You are in the midst of bargaining for a new contract and you must select a form of security clause to include in the bargaining agreement.

1. Do union leaders typically want security clauses? Explain why.
2. Define each of the following kinds of security clauses in terms of their membership and financial requirements: Closed Shop, Preferential Shop, Union Shop, Agency Shop, and Maintenance of Membership.
3. Which security clause do you prefer? Why?
4. Management has agreed to the security clause you selected in part c. The year is now 1948. Is your security clause legal? Explain.
5. Now suppose your craft union opens a local in Arkansas. How will this change the membership and financial requirements of your workers?

what are some examples of companies that have employed localization strategies successfully and why?

1. What forces should a company research when assessing a nation’s business environment

write atleast 500 words.

1. What factors influence a country’s international product strategy?

write atleast 500 words.