Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 17, Problem 17.1IP
To determine
The expected profit.
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You’re the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, Philippines, and Singapore as described next in the table below.
The product sells for $10 and has unit costs of $8. If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of these markets? If so, which one? If you enter, what is your expected profit?
Please answer everything in the photo.
In 2005, Hydrola make and updated their website with different languages, which enables the foreign customer to view and build an international network between them, which that lead to the company expand in the region without local intermediaries due to the internationalization of the organizational culture. Following the creation of its website, Hydrola received numerous expressions of interest from abroad. Contrary to the CEO's expectations, requests were not coming from European and American markets, but rather from Africa, the Middle East, and Latin America. The company has selected Tunisia, Senegal, and Mexico as the initial choice of expansion markets. Hydrola's business is the production and maintenance of hydraulic and pneumatic spare parts for industrial machinery.
Besides the countries mentioned above, what other countries are potential expansions for Hydrola? Please propose 5 countries and the reason (Except for China), and the 5 main indicators related to export strategy…
Chapter 17 Solutions
Managerial Economics: A Problem Solving Approach
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