You are the manager of the only firm worldwide that specializes in exporting fish products to...

You are the manager of the only firm worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant first-mover advantage. Recently, one of your Japanese customers has called to inform you that the Japanese legislature is considering imposing a quota that would reduce the number of pounds of fish products you are permitted to ship to Japan each year. Your first instinct is to call the trade representative of your country to lobby against the import quota.

Is following through with your first instinct necessarily the best decision?

a. Yes - a quota restrains your sales and will ultimately hurt your bottom line.

b. No - a quota may actually increase the profits of the follower.

c. No - a quota won't have any effect on a follower.

d. Yes - a quota will force the price to be lower and ultimately lower your profits.

Expert Solution

Rahul Sunny answered 1 year ago

You are a new staff accountant at Worldwide Consulting, a global accounting firm that specializes in...

You are a new staff accountant at Worldwide Consulting, a global accounting firm that specializes in providing consulting services to companies both domestic and global. As part of your new responsibilities, you have been instructed to review SEC proposed rules to determine whether they should be commented on. Visit the Securities and Exchange Commission (SEC) website at www.sec.gov (Links to an external site.). Go to the Regulation menu, and the Proposed Rules sub menu. Review and identify a recent proposed...

You are employed as an assistant project manager for a large firm that specializes in the...

You are employed as an assistant project manager for a large firm that specializes in the construction of commercial buildings throughout the Southeast. You recently finished work on a large bank building in Birmingham, Alabama, and are now working in the main office in Atlanta where you are heavily involved in estimating. The company is very safety conscious. This awareness is reflected in the firm’s injury incidence rate which is about 1/6th of the national average for this type of...

HighTech Industries (HTI) is a worldwide manufacturing company that specializes in high technology products for the...

HighTech Industries (HTI) is a worldwide manufacturing company that specializes in high technology products for the aerospace, automotive and plastics industries. The state of the art technology and business innovation have been key to HTI's success over the last ten years. After a meeting of the board of directors, there was some feeling that the company was moving away from its goal of striving to maintain and expand their global position through innovative management teams. One area of concern was...

Digital Business Incorporated (DBI) is a worldwide manufacturing company that specializes in high technology products for...

Digital Business Incorporated (DBI) is a worldwide manufacturing company that specializes in high technology products for the aerospace, automotive, and plastics industries. State-of-the-art technology and business innovation have been key to the firm’s success over the last several years. DBI has 10 manufacturing plants in six foreign countries. Its products are sold worldwide through sales representatives and sales offices in 23 countries. Performance information from these plants and offices is received weekly and is summarized monthly at the Toronto headquarters....

A financial services firm is interested in investigating the cost of exporting a company’s products in...

A financial services firm is interested in investigating the cost of exporting a company’s products in 4 regions worldwide. The financial analysts collect data of the cost associated with compliance of the economy’s customs regulations to export a shipment in 10 countries (in US$) selected from each of 4 regions. They would like to investigate whether the average costs of exporting differ across the four regions. Which method of analysis is appropriate for answering the question of the financial analysts?...

A large advertising firm specializes in creating television commercials for children’s products. The firm wants to...

A large advertising firm specializes in creating television commercials for children’s products. The firm wants to design a study to investigate factors that may affect the lengths of time a commercial is able to hold a child’s attention. A preliminary study determines that two factors that may be important are the age of the child and the type of product being advertised. The firm wants to determine whether there were large differences in the mean length of time that the...

Your firm, which specializes in complex electronic products, has grown rapidly and you are now incorporating....

Your firm, which specializes in complex electronic products, has grown rapidly and you are now incorporating. Even after incorporation, a large percentage of the stock will be held by the founders, including you. Your colleague recommends a large corporate board made up exclusively of outsiders.She is very concerned about the sensationalized corporate scandals in recent years. Do you agree with her recommendation? Explain.

Exporting, Licensing, or FDIA firm has three basic choices if it wants to sell its products...

Exporting, Licensing, or FDIA firm has three basic choices if it wants to sell its products in a foreign market—exporting, licensing, and foreign direct investment. The choice of the best option depends on characteristics of the product, the processes used to make these products, the control a firm needs to exercise over operations, and how the know-how of the firm might be protected. The best option is a strategic choice the international business manager must make, considering the interplay among...

You are a project manager at a construction company that specializes in building office buildings. You...

You are a project manager at a construction company that specializes in building office buildings. You were approached by a representative of a company that was interested in your company’s services. He told you that their company was growing and they decided to build a new office building to address their needs. Then he told you that they already started the process with another construction company. They signed a contract with the other construction company and they started the building...

You are the manager of a shoe producer. Your company specializes in basketball shoes and a...

You are the manager of a shoe producer. Your company specializes in basketball shoes and a cleaning product for basketball shoes. While the shoes bring in more revenue ($500,000 per year), the cleaning product is a strong seller as well ($150,000 of revenue per year). You are considering a 2% decrease in the price of your company's basketball shoes. Assume that the shoes have an own price elasticity of demand of -1.8 and the shoes and cleaning product have a...

Question