Read the “Blades, Inc. Case” on page 215 in Chapter 6 of your textbook. Answer the five questions at the end of the case on page 216.

Your answer for each question should only be no more than one to two short paragraphs and your answers do not require any calculation.

•  Assignment 1: Demand Estimation
  Due Week 3 and worth 200 points

  Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.

  For a refresher on independent and dependent variables, please go to Sophia’s Website and review the Independent and Dependent Variables tutorial, located at http://www.sophia.org/tutorials/independent-and-dependent-variables–3.

  Option 1
  Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets.

  QD       =          20,000 – 10P + 1500A + 5PX + 10I
  (5,234)  (2.29)   (525)   (1.75)  (1.5)
  R2 = 0.85           n = 120             F = 35.25

  Your supervisor has asked you to compute the elasticity for each independent variable. Assume the following values for the independent variables:

  Write a four to six (4-6) page paper in which you:

  2. Compute the elasticity for each independent variable. Note: Write down all of your calculations.

  Elasticity equation E= (DQD/DP) * (QD/P)

  To find the quantity demanded (QD) we plot in this figures in the QD equation above.

   

   

   

1. Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results.

1. Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support for your recommendation.

2. Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 dollars.

   1. Plot the demand curve for the firm.

   2. Plot the corresponding supply curve on the same graph using the following MC / supply function Q = -7909.89 + 79.0989P with the same prices.

   3. Determine the equilibrium price and quantity.

   4. Outline the significant factors that could cause changes in supply and demand for the product. Determine the primary manner in which both the short-term and the long-term changes in market conditions could impact the demand for, and the supply, of the product.

3. Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves.

4. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

    

   Your assignment must follow these formatting requirements:

    

5. Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

6. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

    

   The specific course learning outcomes associated with this assignment are:

    

7. Analyze how production and cost functions in the short run and long run affect the strategy of individual firms.

8. Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on a company’s operations.

9. Use technology and information resources to research issues in managerial economics and globalization.

10. Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

International Business: Competing in the Global Marketplace, Ninth Edition Chapter 8 answer of Exercise 1 Foreign Direct Investment

Research Task globaledge.msu.edu Foreign Direct Investment

Use the globalEDGETM site to complete the following exercises:

The World Investment Report published annually by UNCTAD provides quick electronic access to comprehensive statistics on the operations of the largest trans- national corporations.

Gather a list of the top 10 non-financial transnational corporations from developing countries. Provide a summary of the countries and industries represented. Do you notice any common traits from your analysis?