Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 6PA
Subpart (a):
To determine
Private firms.
Subpart (b):
To determine
Private firms.
Subpart (c):
To determine
Private firms.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Some less-developed nations are unable to devote resources to various research and development projects. Attempting to increase their economic growth, sometimes they acquire pharmaceutical or technological goods and reverse engineer them to determine how they’re made, then sell them in domestic markets. Is it ethical and/or necessary to produce and sell a product without having developed it and not having a patent for the product? What could be the short run and long run consequences of such an action?
QUESTION 3
3.a) What are Multinational Companies (MNCs) and why it is said that they hold ‘best practices’ and ‘state of the art’ technological and organisational knowledge?
3.b) Let’s assume that you are the manager of a local company in your own country aiming at supplying goods and services to MNCs. What strategies would you introduce in order to maximise the benefits of partnering with MNC subsidiaries? Please explain fully.
3.c) In a second scenario, assume you are the manager of a domestic rival company aiming at competing with MNCs. What processes and steps would you take to compete and remain in the market?
3.d) In a third scenario, you are a policy advisor of the national government in your country. What actions and policies would you implement in order to create a facilitating environment for MNCs and to increase the potential to gain technological knowledge? Why?
“For most of the last 15 years, capital has been cheap. Since 2009, the after-tax cost of borrowing for some large companies has been below the rate of inflation,
making their debt in real terms cost-free. All that changed in March 2022, when the world’s central banks began raising rates to curb rising inflation.”
The paragraph above is an example of:
a. factors of production
b. opportunity cost
c. market failure
d. externalities
Chapter 11 Solutions
Essentials of Economics (MindTap Course List)
Knowledge Booster
Similar questions
- QUESTION 5 a) What is a multinational (MNC)? Discuss some of the benefits MNCS can obtain from their operations in developing countries and the benefits if any these countries can obtain from them. b) What is meant by the term "Free Trade" Discuss the advantages of free trade between countries. =) Briefly outline the role of the treasury department in respect of the following: (i) Short-term management of resources (ii) Long- term maximization of shareholder wealth (iii) Risk managementarrow_forwardList down the important ideas/concepts presente. Globalization is the term used to describe how countries are becoming more interconnected economically and culturally. Globalization is an international process driven by trade, investment technology, and finances; this process affects culture, political systems, economic development and prosperity, and human physical well-being worldwide. Globalization is not new, though. For thousands of years, people and later corporations bought from and sold to each other at great distances. One such example is the thin silk road across central Asia that connected China and Europe during the middle ages. Still, what exactly has driven globalization over the past 20 years? These have been significant developments in both communications and transport technologies. The introduction of specialized bulk carriers and container ships has helped reduce the cost of transportation and significantly increase the volume of world trade. Recent developments in…arrow_forwardAnswer the following questions: 1. It is a term commonly used to refer to international intergovernmental organizations or groups that are primarily made up of member-states 2. A term referring to the regional concentration of economic flows.3. The one who regulates the production and sale of oil is known as:arrow_forward
- Agriculture is the backbone of Africa. But Africa has high poverty rate and the a large amount of money is still used to import food items from overseas. Using your knowledge in corporate financial economics and suggests ways private sectors can contribute to the growth of agriculture.explain using the statement given a. As part of corporate social responsibility, the private sector could be contributing or funding the modern equipment used for agriculture. b. In order to enhance the level of productivity and bring a reduction in imports, the operations of agriculture could be funded by the private sector. c. Whenever any special permissions are required to be given with respect to agriculture, the private sectors could tend to partner with the government of the country.arrow_forwardExplain the following below 1. General agriculture extension approach. 2. Participatory approach. 3. Project approach. 4. Technology transfer approach. 5. Commodity approach. 6. Advisory approach. 7. University -based (educational institution) approach.arrow_forwardPlease identify which of the following does not constitute a barrier that makes it difficult for companies to accomplish the optimal dispersion of their productive activities to locations around the world. Select one: a. Government regulations. b. Barriers to foreign direct investment. c. Issues associated with economic and political risk. d. Reduced transportation costs.arrow_forward
- List down the important ideas/concepts. Globalization is the term used to describe how countries are becoming more interconnected economically and culturally. Globalization is an international process driven by trade, investment technology, and finances; this process affects culture, political systems, economic development and prosperity, and human physical well-being worldwide. Globalization is not new, though. For thousands of years, people and later corporations bought from and sold to each other at great distances. One such example is the thin silk road across central Asia that connected China and Europe during the middle ages. Still, what exactly has driven globalization over the past 20 years? These have been significant developments in both communications and transport technologies. The introduction of specialized bulk carriers and container ships has helped reduce the cost of transportation and significantly increase the volume of world trade. Recent developments in…arrow_forwardEssay: Explain in your own words. (Minimum of 50 words each topic.) 1. What and who benefits from market Integration? How could emerging economies and developing countries like the Philippines benefit from market integration, including increasing our participation in this global phenomenon?arrow_forwardOne of the following is not a factor for the static development of cottage industries in Ethiopia. Select one : a. People engaged in such kind of activities were regarded and stereotyped as 'buda', 'faki ' and ' fuga '. b. People engaged in such type of activities were despised and were given various pejoratives. The negative traditional attitudes towards these activities d. People engaged in this type of activities are organized in cottage industry associations.arrow_forward
- Question 2: Empirical research in various countries creates so many problems for the researchers. Describe these problems that are generally encountered during such type of research.arrow_forwardWhich of the following statements concerning location economies is FALSE? Explain Why? 1. Companies must determine where to sell and where to produce. 2.The Internet is an industry where companies must locate facilities near their foreign customers, so decisions on market and production location are connected. (difficult, page 382) 3.Companies may have excess production capacity already in place that will influence their ability to serve markets in different countries. 4. The process of determining an overall geographic strategy must be flexible because country conditions changearrow_forwardQuestion 5 Consider the production of handmade rugs and assembly robots in India and Canada. Assume that Canada is relatively abundant in capital and that India is relative abundant in labour. Furthermore assume that the production technology for rugs and robots is the same in both countries. (a) Which industry would you expect to be relatively labour intensive, and which capital-intensive? Why (b) Draw production possibilities frontiers for each country keeping the production of rugs in the horizontal axis and the production of robots in the vertical axis. Assuming that consumer preferences are the same in both countries, add indifference curves and relative price lines under autarky. What are the differences in the relative price of rugs between the countries under autarky? (c) Depict the optimal production and consumption bundles when Canada and India open up to trade with each other. Explain what form will the trade pattern take. (d) Does free-trade make all individuals in Canada…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education