| Countries are similar in their ability to produce goods efficiently | B. | International trade is rarely beneficial to a country | C. | Potential world production is greater with unrestricted free trade than it is with restricted trade | D. | Trade is a zero-sum game | | |
The cable companies get away with this by claiming they do not have competition, cities award them the contract by providing coverage, even though they may not have the lowest price. So who’s to say that state regulators from unofficially granting a monopoly to a provider with incentives? The monopolies set their price high, politicians reap the rewards and were forced to take it and like it, or go without. Other monopolies that doing business in this manner are electric companies, transportation and telephone companies. Financial markets are another element in our economy which the government once again has their hands in our pockets.
Sheltering new industries may pay off later 4. Free trade allows companies the possibility of outsourcing the production of goods for domestic sale. Question No.3: Identify the major fallacies of international trade? Answer: 1. One fallacy is that trade is a zero sum activity, if one trading party gains, the other must lost.
If the income of the business is more than the expenses then the company has made money and vice versa. The figures covered in the income statement are important to its managers and owners, but also to their investors and creditors’.
Monopoly output: MR=400-4q MC=40 MR=MC 400 – 4q = 40 then q=90 unit The reason that producing on half the monopoly output (90*1.5 = 135) a Nash equilibrium outcome is that it will exceed the market demand of Nash equilibrium ($160). 4. Problem #8, p. 221-222 in text. (HINT: First calculate the profits of a market with two firms, and then continue this process for 3, 4, and 5 firms.) a.
Task 1 Tesco For this task I chose to review’s Tesco organisations because I like how they are improving their growth in low economy percentage and demand. The image of business cycle: Growth Growth Define boom and recession Boom- The boom stage is when everyone feels good. At this stage demand increased, unemployment is very low, high competition at the job places. The business confidence is high so they invest more and expand themselves. The customers feel good.
• A differentiator gains a competitive advantage because it has the ability to satisfy customers’ needs in a way that its competitors cannot, which allows it to charge a premium price for its product. • Premium prices → increased revenue → superior profitability • A differentiator invests its resources to gain a competitive advantage from superior innovation, excellent quality, and responsiveness to customer needs • A product’s appeal to customers’ psychological desires is a source of differentiation. ▫ Example? 13 Differentiation • Generally, a differentiator chooses to divide its market into many segments and offer different products in each segment • A differentiated company concentrates on developing distinctive competencies in the functions that provide competitive advantage ▫ These are still expensive! • A differentiator must control its cost structure to ensure the price of its products does not exceed the price customers are willing to pay for them • When differentiation stems from the design or physical features of the product, differentiators are at great risk of being imitated ▫ Example?
Although advertisements seem as a positive addition to countries in need of a stable economy, it is a enormous impact on people’s lives. (Doc. E) Without it, people wouldn’t know the latest fashion style, the best car, or the new developed drink and it would keep people in a boring routine of buying the same products and not exploring. Even though advertisements try to influence people’s decisions, it is up to the people as consumers to make moral
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
With these exceptions it explains how a product can be bought without being made in the U.S. It’s hard to understand how to follow the Buy American Act when it states it wants us to use only American made products but also states that there are exemptions to buying foreign products. From what I see the Act would want the government to by U.S. goods but there may be times that using goods from the U.S. may cost more than those of a foreign country. “The use of public interest provides administrative discretionary flexibility to cover not only the application of the requirements but also the interpretation of the other exception,” as stated by Noorzoy in “Buy American” As an Instrument of Policy. (Noorzay, p.