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Drawing on current business publications and using the opening case of the chapter as a guide, discuss how the slow economic recovery in 2011 and 2012 has affected the current strategies of firms other than those mention in the case.
Show the effect of each of the following events on the market for coffee by stating 1) if the equilibrium price went up, down, or stayed the same and 2) if the equilibrium quantity went up, down, or stayed the same:
The cross-elasticity of demand between American eagle and Hollister is 2.3. What does that tell us about the relationship between these two stores?
An investment that brings $40,000 two years from today is worth what present value in terms of today’s money with an interest rate of 25%?
What product would you suggest that an American company introduce into China based on the current situation and the change to a “two-child” policy and discuss the target customer and segment and the 4P’s for the product you selected
Hedging: The Zinn Company plans to issue $12,000,000 of 20-year bonds I June to help finance a new research and development laboratory. Use this information to create a hedge against rising interest rates.
Give two examples of actions taken by the administration of yourcollege whose effect is to prevent specific markets from reaching equilibrium
A fractional reserve bank creates money. Are there any limits to how much it can create? Does a large bank face the same limits as a small bank? What would be the limits for a large bank that was the only bank in the country?
Are monopolies and oligopolies (firms demonstrating power) always bad for society?
In his will, a man wishes to establish a perpetual trust to provide for the maintenance of a small local park. If the annual maintenance is dollar 7500 per year and the trust account can earn 5% interest, how much money must be set aside in the trust..
What is the implication for the real exchange rate if the PPP condition holds? Under what circumstances does the PPP theory explain how exchange rates are determined why is it not completely accurate all the time?
Which of the following methods will NOT help managers develop a global? mindset?
Two firm’s identical production costs, how do they maximize profits, how does this change if price discrimination is feasible or if the two firms have different costs of productions?
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