Nowadays‚ Brazil is one of the largest producer of wild cashews. Brazil is expanding its presence in the world markets and has steadily improved its macroeconomic stability. As a cashew’s producer since they harvested the cashew apple they had absolute advantage because they were specialized and they produced it more efficiently. We can see that in their yields which are usually higher than other countries and Brazilian processors pay only between 30 and 36 percent of the price the Indian processors pay
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eclectic paradigm as a framework for determining the extent and pattern of the value-chain operations that companies own abroad. Dunning draws from various theoretical perspectives‚ including the comparative advantage and the factor proportions‚ monopolistic advantage‚ and internalization advantage theories. Let’s use a real firm to illustrate the eclectic paradigm. The Aluminum Corporation of America (Alcoa) has over 130‚000 employees in roughly 43 countries. The company’s integrated operations include
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6-2 Lewis Corporation* Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in exhibit 1 on transactions during the year affecting Lewis’s inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method). Exhibit 1 Inventory Transactions 2000-2002--------------------------------------------------- 2000 Beginning Balance 1
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what do you think motivated management to select this method? Under the inventories footnotes‚ below the financial statements (page 46)‚ Nash-Finch says that 79% of their inventories are valued with LIFO. The additional 21% is calculated using FIFO. By using LIFO‚ Nash-Finch is able to report lower holding inventories by $90.7 million for 2012. Being able to report lower inventories lets the company defer holding gains and not pay taxes on that additional amount of inventory. They are also
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Simple Machine- A device that performs work with only one movement. Simple machines include lever‚ wheel and axle‚ inclined plane‚ screw‚ and wedge. Ideal Mechanical Advantage (IMA)- A machine in which work in equals work out; such a machine would be frictionless and a 100% efficient IMA= De/Dr Actual Mechanical Advantage (AMA)- It is pretty much the opposite of IMA meaning it is not 100% efficient and it has friction. AMA= Fr/Fe Efficiency- The amount of work put into a machine compared
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intensity of commodities among two or more than two trading countries. It is generated by Ricardo’s comparative advantage concepts that a country is necessary to take part in free trade even in its absolute predominance of two productions‚ when comparing with other countries‚ as long as a country’s comparative costs differentiate those of others. This distinction gives comparative advantage to every country; they will gain profits from exchanging. It is a simple example showing in the table below.
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hanicalSimple Machines and its Mechanical Advantage What are Simple Machines? What do we mean by Mechanical Advantage? Simple Machines * creates a greater output force than the input force Therefore since work is performed by applying a force over a distance‚ with the use of these machines we can do more work with lesser effort than working with our bare hands. In short‚ they make work easier. Mechanical Advantage * The Ratio between the input force and the output force. * The measure
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product of labor shown below. Home Foreign Baseball bats 1/6 1 tennis rackets 1/2 1/4 (a) What is the opportunity cost of rackets in terms of bats for the Home country? for the Foreign country? (b) In which good does Home have the comparative advantage? why? (c) At world equilibrium with trade‚ what do you know about the relative price of tennis rackets? (d) Assume that tennis rackets trade for bats on world markets at an equlilbrium price of PR =PB = 2. Why will each country specialize? at what
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April 30 and May 31 using the FIFO method. In addition‚ determine cost of goods sold for April and May. c) Compute the cost of the ending inventory on April 30 and May 31 using the LIFO method. In addition‚ determine cost of goods sold for April and May. d) Do X´s cash flows from operations for April and May differ depending on which inventory costing method is used? Explain. 2. INVENTORY METHODS a) A company decided to change its inventory valuation from FIFO to weighted average in a period
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Fremont) 2. Use the theory of comparative advantage to explain the way in which Logitechhas configured its global operations. Why does the company manufacture in Chinaand Taiwan‚ undertake basic R&D in California and Switzerland‚ design products in Ireland‚ and coordinate marketing and operations from California?Comparative advantage‚ as proposed by Ricardo‚ says that it is beneficial for nations to involve in trade even when there is absolute advantage for them to produce all the goods. So nations
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