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Question: IKEA, the flat-pack furniture company, is, in many ways, a classic multinational: its IKEA Industry subsidiaries produce furniture and other items in 11 countries throughout the world. On the retail side, however, IKEA chooses to franchise. From the IKEA website:
"Today, all the IKEA stores (except the IKEA Delft store in the Netherlands, which is owned by Inter IKEA Systems B.V.) operate under franchise agreements. Inter IKEA Systems B.V. is the owner of the IKEA Concept and a worldwide IKEA franchisor."
Using the OLI framework, discuss the franchise system as it relates to IKEA. Be sure to address IKEA's ownership advantage, and what forces might have led them to franchise the retail operation rather than operate corporate stores. Limit your answer to two paragraphs.
Your day as chair of the Fed (II). With the goal of stabilizing output, explain how and why you would change the interest rate in response to the following.
Suppose that perfectly competitive firm faces the market price (P) $5 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output (Q) level of 1,500 units.
In the chapter we talked about the problem of lags in discretionary fiscal policy. What does the Solana case tell us about this issue?
In many industries, such as supermarkets, banks, cell phonecompanies, etc., because of mergers our choices as consumers are reduced to two or three competitors. Do you think thisis good for the economy
Find a Hamilton path that starts at A and ends at B in the graph above. How many distinct Hamilton circuits does the graph above have? How many edges are in K15, the complete graph with 15 vertices?
The supply curve for product X is given by QXS = -420 + 20PX. Find the inverse supply curve. How much surplus do producers receive when QX = 380? When QX = 1,060
Microeconomics is considered to be the study of scarce resources. Here, customers must make allocation decisions. These 3-basic trade offs include which goods or services are to be manufactured,
An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates.
Examine the decisions of a small business owner. Since microeconomics is the study of individual households, firms, and government, we will take a closer look at the operations of a franchise firm.
The salvage value after 8 years is $15,000. Compute the accumulated depreciation through Year 4 using straight-line depreciation
What type of barriers to entry exists in this Industry and how did Virgin Mobile manage to enter into this industry and justify why it is beneficial for existing firms to attempt to create such barriers.
Two countries, the united States and England, produce potatoes. The price of potatoes is $3.15 in the United States and is E1.25 in England.
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