With the advent of NAFTA, Cranford Manufacturing has a U.S. division and a Mexico division. Each division builds specialty components that are used by both divisions. For each dollar in sales by the U.S. division, Mexico furnishes $0.20 in components, and for each dollar in sales of the Mexico division, the United States furnishes $0.05 in components. Each division uses $0.10 worth of its components in its own division. Find the value of the components each division must produce to support external sales of $200 million by the U.S. division and $180 million by the Mexico division. Give your answer in millions of dollars. Report only the number, not the units.

With the advent of NAFTA, Cranford Manufacturing has a U.S. division and a Mexico division. Each division builds specialty components that are used by both divisions. For each dollar in sales by the U.S. division, Mexico furnishes $0.20 in components, and for each dollar in sales of the Mexico division, the United States furnishes $0.05 in components. Each division uses $0.10 worth of its components in its own division. Find the value of the components each division must produce to support external sales of $200 million by the U.S. division and $180 million by the Mexico division. Give your answer in millions of dollars. Report only the number, not the units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Union. Its choices are given below. The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. If these are the firm’s only options, which one would you advise it to choose? Why? Manufacture the product at home and let foreign sales agents handle marketing. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50–50 joint venture and marketed by the European firm. please help with this discussion post
The economies of North Korea and India are: different in that North Korea has a command system, while India has a market system. similar in that they are both basically command systems. similar in that they are both basically market systems. different in that India has a command system, while North Korea has a market system.
127.) Suppose Robinson and Crusoe are stranded on a desert island in the Pacific Ocean and discover a large amount of currency from a previous shipwreck. Friday catches 20 fish and sells them to Robinson Crusoe for $40 apiece. Robinson Crusoe uses the fish he purchased from Friday to make 40 gallons of fish oil, which he sells to Friday for $20 per gallon. If the transactions above are the only ones that take place in 2002, what is the GDP of the island in 2002? $0 $800 $1600 $2400
Suppose the US is relatively well endowed with skilled workers and Mexico is relatively well endowed with unskilled workers. Define wg as the wage of a skilled worker and wy as the wage of an unskilled worker. The production of widgets is unskilled labor intensive and the production of gadgets is skilled labor intensive. Both factors of production are mobile across industries but immobile across countries. Assume perfect competition in both markets. In moving from autarky to free trade, the skilled workers are better off in Mexico. True. False.
Which of the following does NOT classify as a measure used by the government to protect domestic firms from foreign competition?(1) Tariffs;(2) Quotas;(3) Interest rates;(4) Exchange rate policy.
just need answer thanks ! please quickly! true or false 12 Assume the following merchandise trade transaction by American with foreign companies: Korean Airlines buys a new Boeing 777 jet airplane, including parts, from the Seattle plant for $140,000,000, current account will increase by $140,000,000
With a population of 1.3 billion and GDP growth at or above 10%, China is poised to become the most dominant consumer base in the world. It is no surprise, then, that for several years, a whole host of companies have made attempts to sell their wares in China. Companies that enter China, however, face significant late-mover disadvantages. Consider, for example, mobile phones—any telecommunications firm that wants to enter the Chinese market faces huge hurdles. China Mobile, the largest service provider in the nation, announced that they added 5.26 million new subscribers in the month of August 2009, bringing their total to 502.9 million. These figures dwarf those of the Verizon, the largest service provider in the U.S., which added 1.1 million subscribers in the second quarter of 2009, bringing their total to 87.7 million. China Mobile also has a huge technological advantage, as its network covers all 31 of China’s provinces and reaches 97% of China’s population. Since China Mobile is…
how does AfCFTA differ from other regional trading grouping
Question 10 Which statement is supported by the information in the table? Export and Import Table Canada United States Top Export Partners n Export Partner D United States United Kingdom Canada Mexico China Japan Percent of Exports 73.70% 4.20% 19.00% 13.30% 7.00% 4.50% Top Import Partners Import Partner United States China Mexico China Canada Mexico Japan Germany B The United States exports more goods to China than to Canada. Percent of Imports 49.50% Trade with China disrupts trade between the United States and Canada. 10.80% A Canada and the United States are each the chief exporting nation to the other. 5.50% 18.40% 14.20% 11.70% 5.80% 4.40% Canada imports more goods from the United States than it exports to the United States.
FedEx and DHL have similar delivery time to the most global destinations. However, DHL has lower costs for shipments in Europe. Considering delivery time and cost as attributes of companies’ offerings, FedEx has_______________in global deliveries and _____________ in shipment costs in Europe as compared to DHL A. Parity; compromise B. Disadvantage; parity C. Parity; competitive advantage D. Disadvantage; dominance
If Boeing's dollar aircraft prices increase 25% and the yen/dollar exchange rate declines 15%, Japan Air Lines is effectively facing a price increase of 40, 2, or 10 % for the purchase of a Boeing 747. Boeing's margin would likely rise or fall if the yen depreciated and competitor prices were unchanged.