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Facilities in an emerging market

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Reference no: EM13894042

Discussion 1

• In your workplace or home, are transfer prices, prediction markets, and relational contracts used? If so, explain how. If not, describe how you might implement these tools in your workplace or home.

• The family is another sort of internal market. How could transfer prices, relational contracts, and prediction markets be used within a family?

Discussion2

• What is the best way to measure a firm's performance? Why?

• Why do managers need to understand the difference between economic profit and accounting profit? Provide an example of economic vs. accounting profit from your own experience.

Discussion3

• You are the CEO of a firm that has manufacturing facilities in an emerging market. Suppose that country's government decides to impose trade restrictions requiring that all companies be majority-owned by domestic firms. What actions would you take in response to the government's restrictions?

• If you were a CEO, would you prefer a flexible exchange rate or a fixed exchange rate? Why?

Reference no: EM13894042

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