EBC is cycle Manufacturing Company and in the early 2000s many bicycle manufacturer started manufacturing of mountain and speed bikes but they engaged in use of stick with cool, upright bike perfect for cruising City Street which made bikes more comfortable. As a result, bike of EBC became more famous. They decided to open its manufacturing site in T country where they can easily export bike to neighboring AN country nation like C country. They also started to import bikes into the US country which is actually cheaper for them than producing on its home soil. EBC is rapidly growing day by day but T a multi corporation bought EBC and now they can use the T’s established distribution network to reach new markets more quickly and effectively. Characters in the case: The characters in the case are EBC a cycle manufacturing company and T a multi corporation with offices in Wisconsin, the UK country and G country Adequate information: EBC is doing well in the market because of their uniqueness in model, customer prefer their bikes more and so they decided to enter into global market with better technology which will give them comparative advantage against their bigger competitors. To determine: Whether EBC have to follow the law of T country or the law of the US country

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Answer 1

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Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 2VC

Summary Introduction

Case summary: EBC is cycle Manufacturing Company and in the early 2000s many bicycle manufacturer started manufacturing of mountain and speed bikes but they engaged in use of stick with cool, upright bike perfect for cruising City Street which made bikes more comfortable. As a result, bike of EBC became more famous. They decided to open its manufacturing site in T country where they can easily export bike to neighboring AN country nation like C country. They also started to import bikes into the US country which is actually cheaper for them than producing on its home soil. EBC is rapidly growing day by day but T a multi corporation bought EBC and now they can use the T’s established distribution network to reach new markets more quickly and effectively.

Characters in the case: The characters in the case are EBC a cycle manufacturing company and T a multi corporation with offices in Wisconsin, the UK country and G country

Adequate information: EBC is doing well in the market because of their uniqueness in model, customer prefer their bikes more and so they decided to enter into global market with better technology which will give them comparative advantage against their bigger competitors.

To determine: Whether EBC have to follow the law of T country or the law of the US country

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Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 2VC

Summary Introduction

Case summary: EBC is cycle Manufacturing Company and in the early 2000s many bicycle manufacturer started manufacturing of mountain and speed bikes but they engaged in use of stick with cool, upright bike perfect for cruising City Street which made bikes more comfortable. As a result, bike of EBC became more famous. They decided to open its manufacturing site in T country where they can easily export bike to neighboring AN country nation like C country. They also started to import bikes into the US country which is actually cheaper for them than producing on its home soil. EBC is rapidly growing day by day but T a multi corporation bought EBC and now they can use the T’s established distribution network to reach new markets more quickly and effectively.

Characters in the case: The characters in the case are EBC a cycle manufacturing company and T a multi corporation with offices in Wisconsin, the UK country and G country

Adequate information: EBC is doing well in the market because of their uniqueness in model, customer prefer their bikes more and so they decided to enter into global market with better technology which will give them comparative advantage against their bigger competitors.

To determine: Whether EBC have to follow the law of T country or the law of the US country

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 2VC

Summary Introduction

Case summary: EBC is cycle Manufacturing Company and in the early 2000s many bicycle manufacturer started manufacturing of mountain and speed bikes but they engaged in use of stick with cool, upright bike perfect for cruising City Street which made bikes more comfortable. As a result, bike of EBC became more famous. They decided to open its manufacturing site in T country where they can easily export bike to neighboring AN country nation like C country. They also started to import bikes into the US country which is actually cheaper for them than producing on its home soil. EBC is rapidly growing day by day but T a multi corporation bought EBC and now they can use the T’s established distribution network to reach new markets more quickly and effectively.

Characters in the case: The characters in the case are EBC a cycle manufacturing company and T a multi corporation with offices in Wisconsin, the UK country and G country

Adequate information: EBC is doing well in the market because of their uniqueness in model, customer prefer their bikes more and so they decided to enter into global market with better technology which will give them comparative advantage against their bigger competitors.

To determine: Whether EBC have to follow the law of T country or the law of the US country

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 3, Problem 2VC

Summary Introduction