7 Question 8Please calculate Inditex production costs in comparison to its competitors who outsourced to Asia.Assume Asian production is 20% more expensive than European production (page 11 of the casesuggests it is 15% to 20% more expensive). Thus if it produced all its garments in Europe, Inditexwould be 20% more expensive than its competitors. But note that Inditex does not produce 100% ofits garments in Europe (see page 11 second para). Thus its production costs would be lower than themaximum 20% depending on the proportion of production in Europe. Using data from the case onthe proportion of garment production in Europe Inditex production costs are . than competitors.There is insufficient data in the case15% higher16% higher10% higher

According to the question, Asian production is 20% more expensive than European production.…

Question 8 Please calculate Inditex production costs in comparison to its competitors who outsourced to Asia. Assume Asian production is 20% more expensive than European production (page 11 of the case suggests it is 15% to 20% more expensive). Thus if it produced all its garments in Europe, Inditex would be 20% more expensive than its competitors. But note that Inditex doces not produce 100% of its garments in Europe (see page 11 second para). Thus its production costs would be lower than the maximum 20% depending on the proportion of production in Europe. Using data from the case on the proportion of garment production in Europe Inditex production costs are . than competitors. There is insufficient data in the case 15% higher O 16% higher O 10% higher

Question 8 Please calculate Inditex production costs in comparison to its competitors who outsourced to Asia. Assume Asian production is 20% more expensive than European production (page 11 of the case suggests it is 15% to 20% more expensive). Thus if it produced all its garments in Europe, Inditex would be 20% more expensive than its competitors. But note that Inditex doces not produce 100% of its garments in Europe (see page 11 second para). Thus its production costs would be lower than the maximum 20% depending on the proportion of production in Europe. Using data from the case on the proportion of garment production in Europe Inditex production costs are . than competitors. There is insufficient data in the case 15% higher O 16% higher O 10% higher

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A79. Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’? (a) Mobile wallets will not be necessary for online payments. (b) Digital currency will totally replace the physical currency in about two decades. (c) FDI inflows will drastically increase. (d) Direct transfer of subsidies to poor people will become very effective.
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3 Calculate the income taxes that a person has to pay considering the table below- If a person's income is $6,500, how much does he pay in taxes? If a person's income is $13,500, how much does she pay in taxes? (a) (b) Taxable Up to $5,000 $5,001-$10,000 $10,001-$15,000 Income Taxes 10% of taxable income 14% of taxable income 16% of taxable income
Price of X = $2 Income $24 = Price of Y=$4 Qx TUX MUX MUx/Px Qy TUY MUY MUy/Py 1 24 24 2 46 24 24 12 1 40 040 10 2 72 3 20 20 3 100 4 A 9 4 5 dings 5 100 16 5 16 4 6 114 6 144 es The correct value for the blank labeled A is