Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 6, Problem 7E
To determine
To ascertain the effective
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Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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- Consider the following variation of Table 11-1 for the U.S. semiconductor market U.S. Tariff rates 0% 8% 16% From Canada, before NAFTA $45 $W $52.2 From Asia, before NAFTA $40 $X $Y From Canada, after NAFTA $43 $Z $Z From Asia, after NAFTA $40 $X $Y From the United States $46 $46 $46 Fill in the values for W, X, Y, and Z. Suppose that before NAFTA, the United States had a 16% tariff on imported semiconductors. Which country supplied the U.S. market? Is it the lowest-cost producer? After NAFTA, who supplies the U.S. market? Has either trade creation or diversion occurred because of NAFTA? Explain. Now suppose that before NAFTA, the United States had an 8% tariff on imported semiconductors. Then repeat parts (b) and (c). In addition to the assumptions made in (d), consider the effect of an increase in high-technology investment in Canada due to NAFTA, allowing Canadian firms to develop better technology. As a…arrow_forwardWhat describes the type of FDI undertaken by a French tyre manufacturer that acquires a South Korean competitor protected by high import tariffs?arrow_forwardIf you were responsible for marketing CAT scanners worldwide (average price, $1,200,000) and your country of manufacture was experiencing a strong and appreciating currency against almost all other currencies, what options are available to you to maintain your competitive advantage in world markets?arrow_forward
- 7 Q. China is known to price its exports differently in international markets compared to price in its domestic market. What would be the economic rational for segmenting markets? What can the importing country do to prevent or retaliate against such pricing?arrow_forwardPlease answer number 3arrow_forwardSteel is traded in a perfectly competitive world market. Australia is an exporter of steel. A growth in world demand for steel for use in construction raises the world price of steel. The effect of the rise in the world price of steel will be to: Increase the quantity of steel consumed by Australian consumers, and increase exports of steel. Cause Australia to commence importing steel. Decrease the quantity of steel consumed by Australian consumers, and increase exports by Australian producers. Decrease the price paid by Australian consumers for steel. Increase the quantity of steel consumed by Australian consumers, and decrease exports of steel.arrow_forward
- Why do oil prices rise because of the Ukraine-Russia war? How does it affects the economies of other countries?arrow_forwardWould you please explain thoroughly which option is wiser, based on the attached photo? A manufacturer company in Taiwan sells its goods in 4 regions (North America, Europe, Asia, and Latin America), based on the exchanged rates differences, which decision the company should take to increase the volume of sales and net profit, suppose the average price in the industry is $225? Export with a high price than the average of the industry. Export with a lower price than the average of the industry. Not to export because the currency of other regions stronger than the Taiwanese dollar. Not to export because the Taiwanese dollar is stronger than other currencies, hence if the company export, the price will be high where other countries may refuse to trade due to high prices and weak currency in importer countries.arrow_forwardInternational Buffer Stock Agreements often fail because ... please select one or more : a) If the target price range is set too high, then the agency will exhaust its endowment of funds b) If the target price range is set too low, the agency will exhaust its initial endowment of the good c) The agreement may not embody all exporters of the good d) The agency may fail to respond to extend short-term loan to the member e) Some exporting countries may not honour their quotasarrow_forward
- Q65 If Canada can produce both cannabis and soybeans more efficiently, that is, with smaller absolute amounts of resources, than Brazil, then: Multiple Choice Brazil should impose tariffs. then there is no possible basis for mutually advantageous specialization and trade between Canada and Brazil. we can conclude that Canada is an industrially advanced economy and Brazil is a developing economy. it will necessarily be advantageous for Brazil to import both cannabis and soybeans from Canada. mutually advantageous specialization and trade between Canada and Brazil may still be possible.arrow_forwardThe opening statement on the website of the Organization of Petroleum Exporting Countries (OPEC) says its members seek “ … to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.” To achieve these goals, OPEC attempts to coordinate and unify petroleum policies by raising or lowering its members’ collective oil production. However, increased production by the United States, Russia, Oman, Mexico, Norway, and other non-OPEC countries has placed downward pressure on the price of crude oil. Please explain: To achieve these goals of stable and fair oil prices, what must OPEC do to maintain the price of oil at its desired level? How easy is it for OPEC to achieve this goal?arrow_forwardThe United States Embassy in the Philippines is being required by the Bureau of Customs to pay custom duties on all properties being transported to the Philippines, for use in the embassy by the ambassador and other diplomatic officers. May the US government be required to pay?arrow_forward
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