A newspaper printing press system is more than a hundred feet long, stands four or five stories tall, and weighs 2 million pounds. Only about ten of the systems are sold each year in the United States. Because of the size and cost, a newspaper may update its system, rather than replace it, by buying “additions.”By the 1990s, Goss International Corp. was the only domestic maker of the equipment in the United States and represented the entire U.S. market. Tokyo Kikai Seisakusho (TKSC), a Japanese corporation, makes the systems in Japan. In the 1990s,TKSC began to compete in the U.S. market, forcing Goss to cut its prices below cost. TKSC’s tactics included offering its customers “secret” rebates on prices that were ultimately substantially less than the products’ actual market value in Japan. According to TKSC office memos, the goal was to “win completely this survival game” against Goss, the “enemy.” Goss filed a suit in a federal district court against TKSC and others, alleging illegal dumping. At what point does a foreign firm’s attempt to compete with a domestic manufacturer in the United States become illegal dumping? Was that point reached in this case? Discuss.
In: Other
Many governments in the world signed and ratified the Kyoto Accord’s limitations on emissions of greenhouse gases toretard the depletion of ozone in the atmosphere—a collective good (e.g., less ozone depletion). The United States [under the second Bush’s administration] has refused to accept and ratify the accord. President Trump said he would not recognize the United States’ obligation with the Paris agreement, the first international treaty to mitigate global warming.
Q. 2a) Why does this refusal by the hegemonic power and by far the leading producer of greenhouse gas emissions (Let’s assume that this is the United States) hurt other countries? [Hint: Think about the relationship between “the creation of negative externalities” and “involuntary consumption”]
Q. 2b) How will other governments react if we assume a Tit-for-Tat strategy is necessary to induce international cooperation?
Q. 2c) How would you advise the members of an international environmental organization to obtain U.S. cooperation through its appeal to U.S. constituents? [Hint: Policy decision-makers are fully aware of how they can achieve a better outcome through reciprocal cooperation, but their policy choices are constrained by their domestic constituency interests, often leading to their decisions to be suboptimal]
In: Economics
Area Rugs,Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Spain, Singapore, and the United States. All area rugs are to be sold to retail outlets in the United States for $280 per unit. These retail outlets add their own markup when selling to final customers. Fixed costs and variable cost per unit (area rug) differ in the three countries
|
Variable |
||||
|
Sales Price |
Annual |
Variable |
Marketing and |
|
|
to Retail |
Fixed |
Manufacturing Cost |
Distribution Cost |
|
|
Country |
Outlets |
Costs |
per Area Rug |
per Area Rug |
|
Spain |
$280.00 |
$9,394,000 |
$70.00 |
$56.00 |
|
Singapore |
280.00 |
5,775,000 |
65.00 |
47.00 |
|
the United States |
280.00 |
22,050,000 |
70.00 |
63.00 |
Requirement 1
Compute the breakeven point for Area Rugs, Inc. in each country in (a) units sold and (b) revenues
Determine the formulas for the breakeven point in units and the breakeven point in revenues. begin with the breakeven point in units, then the breakeven point in revenues.
Requirement 2
If Area Rugs, Inc. plans to produce and sell 65,000 rugs in 2014, what is the budgeted operating income for each of the three manufacturing locations? comment on the results
In: Accounting
1 The purchases of items from foreigners will be equal to the sales of items to foreigners.
True
False
2 The following chart indicates a hypothetical newspaper quotation of the exchange rates of various currencies.
|
U.S. Dollar Equivalent |
||
|---|---|---|
|
February 1 |
February 2 |
|
| British pound | 1.99 | 1.975 |
| Canadian dollar | 0.645 | 0.86 |
On February 2, the U.S. dollar (appreciated /depreciated) against the British pound.
On February 2, the U.S. dollar (appreciated /depreciated) against the Canadian dollar.
3
Suppose the exchange rate between the United States and Mexico freely fluctuates in the open market.
Indicate whether each of the following would cause the dollar to appreciate, depreciate or remain unchanged relative to the peso.
|
Appreciate |
Depreciate |
No change |
||
|---|---|---|---|---|
| Higher real interest rates in Mexico induce U.S. citizens to move some of their financial investments from U.S. to Mexican banks. | ||||
| Lower real interest rates in the United States induce Mexican investors to borrow dollars and then exchange them for pesos. | ||||
| As a result of a Mexican oil discovery, Pemex, the Mexican oil company, increases the quantity of drilling equipment it purchases in the United States. |
4 Economies with sluggish growth often run trade surpluses.
True
False
In: Economics
In the open economy
macroeconomic model which of the following is included in the
demand for U.S. dollars in the market for foreign-currency?
(x) A retail outlet in Canada wants to buy computers from a U.S.
computer manufacturer.
(y) ABC Securities, a U.S. stock brokerage, wants to purchase stock
issued by a French corporation.
(z) A United States bank that has branch offices in Mexico and
Canada loans dollars to Tom, a resident of the United States, who
wants to purchase a new car that was made in the United
States.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only
In the open economy
macroeconomic model, which of the following is included in the
supply of U.S. dollars in the market for foreign-currency?
(x) Nebraska Life, a U.S. life insurance company, wants to buy a
Japanese government bond.
(y) ABC Securities, a U.S. stock brokerage, wants to purchase stock
issued by a French corporation.
(z) Tony, a U.S. citizen, wants to hold more currency in case of
emergencies.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only
In: Economics
Someone posted from a discussion question.... respond to posted
What are the three roles of the U.S. government in the health care system and in health insurance?
Without the government Healthcare in the United States and basically anywhere in the world would not exist. In the U.S the government has three important roles, the United States government acts as a provider, payor and lawmaker.
The government provides health care directly through for example; The Veterans Administration, TRICARE and the India Health Service. There are clinics, hospital and other health organizations that are supported by the government. As a payor to third party organizations or services. These services could be for example, to handle the claims for Medicare among other things. The third role of the United States government in the Health Care system is to act as a lawmaker, regular, to promote fair competition and avoid monopolies, moreover, the government enact laws to protect and service the public.
Provide some examples of the influence the Federal government has on private health insurance.
In terms of the influence the government has had on private health insurance. The state provides regulations and mandates to providers of health insurances, they must comply with certain regulations and requirement. The state also controls and monitors their legal functions and structure to ensure the company can meet its obligations.
In: Operations Management
Eddison Electronic Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. You were asked to provide training to operational managers in areas in which they are struggling, such as internal rate of return, simple rate of return, and net present value. Please discuss the following:
How is the internal rate of return calculated?
Explain how it supports a capital business decision versus the NPV model.
Explain how simple rate of return has been used in a company you are familiar with related to capital budgeting.
In: Accounting
The United States has a minimum wage law. Moreover, many states have their own laws regarding the minimum wage that workers must receive. Please see the U.S. Department of Labor's Webpage at: U.S. Department of Labor for a map and enumeration of the laws.
With this in background, please critically discuss whether there should be any minimum wage law. If not, why not? If there should be such a law, what standards should be used to establish that the minimum wage is a fair and equitable wage?
In: Operations Management
9. Uncovered Interest Parity and Expectations Theory of interest rates Assume two countries, the U.S. and the UK. In the United States, there are 1-year bonds and 5-year bonds (denominated in dollars). In the United Kingdom, there are also 1-year and 5-year bonds (denominated in pounds). There is a spot market Mathematically, come up with one equation for the Spot Exchange Rate that satisfies (1) the uncovered interest parity condition; (2) the expectation theory for interest rates in the US; and (3) the expectation theory of interest rates in the United Kingdom. The EXPLAIN what your equation means.
In: Economics
You are hoping to get an estimate of the number of birch trees in a local park. You have a satellite image of the park, and plan to use quadrat sampling to estimate the number of birch trees in the park. The park is 1000m by 1000m. Describe how you can set up your quadrat and how you would then use the data you collect to estimate the number of trees in the entire park. (Include a sample calculation).
In: Statistics and Probability