1. Determining Missing Items from Computations

   Data for the North, South, East and West divisions of Free Bird Company are as follows:

   Sales

   Income from Operations

   Invested Assets

   Return on Investment

   Profit Margin

   Investment Turnover

   North

   $860,000

   (a)

   (b)

   17.5%

   7.0%

   (c)

   South

   (d)

   $51,300

   (e)

   (f)

   4.5%

   3.8

   East

   $1,020,000

   (g)

   $680,000

   15.0%

   (h)

   (i)

   West

   $1,120,000

   $89,600

   $560,000

   (j)

   (k)

   (l)

   a. Determine the missing items, identifying each by the letters (a) through (l). If required, round percents and investment turnover to one decimal place.

   a.	$
   b.	$
   c.
   d.	$
   e.	$
   f.											%
   g.	$
   h.											%
   i.
   j.											%
   k.											%
   l.

   b. Determine the The excess of divisional income from operations over a minimum acceptable income from operations.residual income for each division, assuming that the minimum acceptable rate of return established by management is 12%.

   Division	Residual Income
   North Division	$
   South Division	$
   East Division	$
   West Division	$

   c. Which division is the most profitable in terms of (1) return on investment and (2) residual income?

   	Most Profitable
   1. Return on Investment	North East South West
   2. Residual Income	North East South West

A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $3,000 per diamond, and the demand for diamonds is described by the following schedule:

1. If there were many suppliers of diamonds, the price would be $____??? per diamond and the quantity sold would be ___??? diamonds.

2. If there were only one supplier of diamonds, the price would be $____???per diamond and the quantity sold would be ____??? diamonds.

Suppose Russia and South Africa form a cartel.

3. In this case, the price would be $____???per diamond and the total quantity sold would be ____??? diamonds. If the countries split the market evenly, South Africa would produce ____??? diamonds and earn a profit of $___???.

4. If South Africa increased its production by 1,000 diamonds while Russia stuck to the cartel agreement, South Africa's profit would DECREASE OR INCREASE to $____???.

5. Why are cartel agreements often not successful? CHOOSE ONE

One party has an incentive to cheat to make more profit.

Different firms experience different costs.

All parties would make more money if everyone increased production.

1. ShopSmart’s International Growth Strategy

ShopSmart, founded by in 1919 by Nick Smart, is a British multinational grocery and merchandise retailer. It is the largest grocery retailer in the United Kingdom, with a 28% share of the local market and the second largest after Walmart measured in revenue. In 2017, ShopSmart had sales of more than £62 billion ($70 billion US dollars), more than 480,000 employees and 6,553 stores in 13 countries.

In its home market of the United Kingdom, the company’s strengths are reputed to come from strong competencies in marketing and store site selection, logistics and inventory management and its own label product offerings. By the early 1990s, these competencies had already given the company a leading position in the United Kingdom. ShopSmart was generating strong cash flows and senior managers had to decide how to use that cash. One strategy they settled n was international expansion.

As managers looked at international markets, they soon concluded that the best opportunities were not in established markets in North America and Western Europe where strong competitors already existed but in emerging markets of Eastern Europe and Asia, where there were strong underlying growth trends. ShopSmart’s first international foray was into Hungary in 1995 where it acquired Globals Stores, a state-owned grocery chain. By 2017, ShopSmart was the market leader in Hungary accounting for 1% of the whole economy of Hungary.

Next, ShopSmart acquired 31 stores in Poland from Stavia Limited. The following year, in 1996, ShopSmart added 13 stores that it purchased from Kmart in the Czech Republic and Slovakia. The next year, ShopSmart moved to purchase stores in the Republic of Ireland.

ShopSmart’s Asian expansion begun in 1998 when it moved into Thailand. In 1999, the company entered South Korea when it partnered with Samsung to develop a chain of hypermarkets. This was followed by entry into Taiwan in 2000, Malaysia in 2002, Japan in 2003 and China in 2004.

The move into China came after three years of careful research and discussions with potential partners. Like many other western companies, ShopSmart was attracted to the Chinese market by its large size and rapid growth. In the end, ShopSmart settled on a 50-50 joint venture with Hymall, a hypermarket chain that is controlled by Ting Hsin, which has been operating in China for six years. In 2014, ShopSmaart combined its 131 stores in China in a joint venture with the state-run China Resources Enterprise and its nearly 3,000 stores. ShopSmart owned 20% of the joint venture. As a result of these moves, by 2017, ShopSmart generated sales of about $21 billion outside the United Kingdom. The addition of international stores has helped make ShopSmart the second largest company in the global grocery market behind only Walmart. By 2017, all its foreign ventures were making money.  

(Source: Adapted from Hill, C.W.L. & Hult, G.T.M., (2019), International Business: Competing in the Global Marketplace, 12th Edition, McGraw Hill Education)

1. Examine two reasons why ShopSmart’s initial international expansion focused on emerging markets rather than competing with established companies in the more advanced markets of North America and Western Europe.

2. Discuss two disadvantages that ShopSmart encountered as a first mover into these emerging markets.

3. ShopSmart’s entry strategy into the Eastern European countries was through acquisition. Discuss three disadvantages that the company is likely to encounter as a result of this entry strategy

4. Identify ShopSmart’s strategic entry into the Asian market and discuss two benefits that the company sought to achieve with this strategy

Why are more children who have chronic conditions participating in early childhood settings? There are more children with chronic conditions. Laws provide for the inclusion of children with special health care needs in early childhood settings. There are more early childhood settings equipped to deal with chronic conditions. It is common practice so more parents feel comfortable with leaving their chronically ill child in an early childhood setting.

The data in Table 2 show the per capita income (PCI) to the nearest $100 and the percentage of the economy in agriculture (PIA) in fifteen countries in South America (1999). The estimated results of a regression model fitted with these data and the error terms are presented below.

                   ^

                 PCI     =   59.13 – 2.60 PIA ………………………………………………………………………..(3)

                 S(b)          8.67      0.71

                 R squared = 0.51      n = 15                                               

Country   1        2        3        4        5        6        7        8        9       10       11      12       13        14        15

Error (e) 32.47   -7.53 8.27 8.67   0.27 -11.53 -14.93 -14.13 -4.33 -2.13 12.47 -7.33   -14.33   23.27 -9.13

                                                              Table 2

Country    1        2        3        4        5        6        7        8        9    10        11        12      13     14     15

Y               76     10     44       47      23      19     13       19       8    44         4         31      24     59     37

X                 6     16       9         8       14      11     12       10      18     5        26          8        8       9       5      

(a)Would it be more or less reasonable to specify the model as PIA = f(PCI)? Explain.

(b)For this model, what is your expectation concerning the impact of the explanatory variable on the dependent variable?

(c) What type of data are these?

(d)Is the result of the estimated coefficient consistent with your expectation?

(e) Test for heteroskedasticity at the 5% level of significance. Use the Glejser method.

Case Study: Global Healthcare Public Policy Imagine that in the near future, the global community has been wracked by successive crises including economic upheaval, severe food and water shortages, and attacks on human dignity. In response, nationwide grassroots movements of young people have elected members of congress and parliament who support restoring leadership throughout the world in the areas of health, freedom, and human rights. Groundswells invoking liberty and justice are sweeping Europe, Africa, South America, Oceania, and the United States. Prompted by this worldwide atmosphere of new hope, the United Nations is convening a World Congress of Present and Future Human Flourishing. Conference sessions will focus on the right to healthcare, health disparities/health inequities, emerging infectious diseases, food and water security, and mechanisms for global environmental and climate governance.

Ethical Analysis

1. Discuss the role of the principles of biomedical ethics in helping to establish a robust global healthcare community capable of providing services to all those in need.

2.Analyze the persistence of global undernutrition and poverty from the perspective of the biomedical ethical principles of autonomy and justice. Describe two global public policy solutions to meaningfully influence these social determinants of health.

3. Analyze the importance of helping to ensure optimal maternal and newborn health from the perspective of the biomedical ethical principles of autonomy and justice. Describe two global public policy solutions to meaningfully impact these social determinants of health.

Consider each of the following independent situations which have come to your attention. In each of the following independent and material situations assume that the client is a reporting entity and that a general-purpose financial report has been prepared and audited:

Event 1: Part of Steel Limited's operations are in South America. Recent changes o government have made it impossible for you to verify the key accounts of inventory, fixed assets and cash and related income statement balances. (50 words)

Event 2: The management of Surf Limited's has refused to disclose a few, director related transactions on the grounds of commercial confidentiality. The financial controller reminds you that no other errors have been found in the financial report and states that the transactions are immaterial and therefore irrelevant to the users of the financial report. (50 words)

Event 3: The annual report of Ranger Limited includes a detailed graph showing revenue for the last 10 years. You note that there are some inconsistencies between the graph and the figures in the audited financial report. Management does not want to change the graph because it would involve increased printing costs. (50 words)

Event 4: Upon review of the recent history of their specialised mining equipment Minco Limited changed the service lives for depreciation purposes on this equipment from five years to three years. This change resulted in a material amount of additional depreciation. (50 words)

TOTAL RECALL

In mid-2000, the Firestone Tire Company issued a recall of some of its tires – those mounted on certain sport-utility vehicles (SUVs) of the Ford Motor Company. This was done in response to reports that tire treads on some SUVs separated in use, causing accidents, some of which involved fatal injuries as vehicles rolled over.

At first, Firestone denied there was a problem with its tires, but it issued the recall under pressure from consumer groups and various government agencies. All of the tires in question were produced at the same tire plant, and there were calls to shut down that facility. Firestone suggested that Ford incorrectly matched the wrong tires with its SUVs. There was also the suggestion that the shock absorbers of the SUVs were rubbing against the tires, causing or aggravating the problem.

Both Ford and Firestone denied that this had been an ongoing problem. However, there was a public outcry when it was learned that Firestone had previously issued recalls of these tires in South America, but had not informed officials in other countries. Moreover, both companies had settled at least one lawsuit involving an accident caused by tread separation several years earlier.

This case raises a number of issues, some related to possible causes, as well as ethical issues.

Discuss each of these factors and their actual or potential relevance to what happened.

a. Product design

b. Quality control

c. Ethics

Choose an ethical area of concern. Consider a real life problem that is timely and presents an ethical dilemma for the healthcare provider or the healthcare industry. This dilemma can be a healthcare related ethical dilemma from a recent magazine, healthcare journal, or reputable newspaper article.