The cosmetics division of Valles Global Industries (VGI) sells a special type of organic perfume that is highly sought after. This perfume sells for $150 per 75 ml bottle. For many years, they have sold in Asia through a Seoul-based importer by the name of Park Beauty Products. Their contract with Park Beauty Products is up for renewal and VGI has decided to look at options. You are in charge of making a recommendation.
Option 1: Continue to sell through Park Beauty Products by selling them the perfume in bulk loads of 750 liters at a cost of $150 USD per liter. Let them handle everything at their cost. VGI receives a net payment of $15 USD per bottle.
Option 2: Sell a license for production to SohnCo Fragrances of Seoul, Korea. They will also manage marketing and distribution of the perfume. SohnCo Fragrances will charge VGI a fixed fee of $2 million USD per year to cover marketing costs. SohnCo Fragrances will pay VGI $25 USD per bottle of VGI products it sells in Asia.
Option 3: Create a new enterprise, VGI Asia, by building a small plant for $15 million USD. Annual fixed costs are estimated to be $1.5 million USD and variable costs are $0.60 per bottle.
USD—United States Dollar
Develop a five-year forecast for each of the three options. Assume there is no inflation and do a pre-tax analysis. Develop a cash flow forecast assuming sales remain variable at somewhere between 1, 700,000 bottles and 2,000,000 bottles per year. Make and support a recommendation as to which of the options to employ.
In: Finance
Suppose the unemployment rate in the United States is 10% and the structural unemployment rate is 6% and the frictional unemployment rate is 5%. The actual Real GDP level is $ 30 billion and the Natural Real GDP level is $27 billion. Please answer questions 3a through 3c below.
3a. Calculate the natural unemployment rate for the United States. Then, please calculate the Cyclical Unemployment rate and then please calculate the recessionary gap or an inflationary gap using the actual Real GDP level and the Natural Real GDP level. Please show your calculations and work.
3b. Based on the information above and from the calculations you performed in 3a, is the United States in a recessionary gap or an inflationary gap? Explain why the United States is in an inflationary or a recessionary gap.
3c. As an economist, what economic fiscal policies can you suggest to President Trump to help combat the inflationary gap or the recessionary gap in the United States in this situation? Explain why the policies you suggested might help to combat the inflationary or recessionary gap that the U.S. economy is experiencing in this situation.
In: Economics
simple hypothesis test please be clear with algorithm
The United States and Japan often engage in intense trade negotiations. U.S. officials claim that Japanese manufacturers price their goods higher in Japan than in the United States, in effect subsidizing the low prices in the United States with extremely high prices in Japan. According to the U.S. argument, Japanese manufactures accomplish this by preventing U.S. good from reaching the market.
An economist decides to test the hypothesis that higher retail prices are being charged for automobiles in Japan than in the United States. She obtains independent samples from 50 retail sales in the United States and 50 sales in Japan over the same time. She found the sample average of the U.S. sales to be 26,596 and the sample average of the Japanese sales to be 27,236. The standard deviations were 1,981 and 1,974 respectively.
Using an alpha of 5%, conduct a hypothesis test.
Please solve clearly displaying the following:
What is the null hypothesis?
critical value?
What is the p-value?
declared alpha?
critical value?
Draw a conclusion?
In: Math
1. The colonies and later the United States were governed by three successive political and economic philosophies, mercantilism, then the Articles of Confederation, and finally the Constitution. Discuss how each of these philosophies facilitated or hindered the economic evolution of the 13 colonies into the United States.
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What is a PICO question related to physical activity levels for adults in the United States?
Can this be used as a good PICO question for research?
In adults in the United States, to what extent do the physical activity interventions assist adults compared with no intervention?
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In the United States, 75 percent of adults wear glasses or contact lenses. A random sample of 10 adults in the United States will be selected. Which of the following is closest to the probability that fewer than 8 of the selected adults wear glasses or contact lenses?
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If the United States imports more goods from abroad than it exports, then foreigners will tend to have a surplus of US dollars. What will this do to the value of the dollar with respect to foreign currencies? What is the corresponding effect on foreign investments in the United States?
In: Finance
1.What are some of the most important current events that are part of the general subject matter of international business economics? Why are they important? How do they affect the economic and political relations between the United States and Europe; and the United States and China?
In: Economics
To what extent and under what circumstances a taxpayer's qualifying relative who is not a citizen of the United States or a resident of the United States, Canada, or Mexico can be claimed a dependent or otherwise taken into account in some beneficial way for U.S. income purposes?
In: Accounting
In: Operations Management