...products by faulty services cause failure costs. * Internal failures are failures that are discovered during the production process or prior to the customer ever coming into contact with the product. There are many reasons the internal failures can occur including defective materials, incorrect methods or processing, or faulty equipment. * External failures are failures that are discovered after the customer has the product. This type of failure becomes very costly to the company due to increase costs of warranty work, liability, payments to customers, providing the customer with a replacement unit, and the costs of handling customer complaints. The three types of costs are not independent from each other. There is a trade-off relationship between the costs. For example an increase in prevention and appraisal costs results in an...
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...person’s actions on someone else. g. Productivity: The amount of goods or services produced. h. Incentives: Something that controls how a person will act. i. Property Rights: The ability of someone to own scarce items. 2. i. Inflation is the increase in the prices in the economy. The cause of inflation is the Government prints too much money, therefore there is a lot more money out there so prices rise. ii. The short-term trade-off between inflation and unemployment is the government spends more money (stimulus) which increases the demand for goods and services. The higher demand makes businesses raise their prices, but it also makes them hire more workers to help with the demand. The more people that are hired, the lower unemployment percentages. 3. Absolute advantage is when one company produces a good using less inputs than another company. Comparative advantage is when one company can produce a product with a lower opportunity cost that the other company. 4. Comparative advantage is more important for trade. It takes in both the idea of time and if it makes sense for that person to make a good when they can make something...
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...1. Do you think there is a trade-off between the positive (high performance) and negative (increased stress) effects of stretch goals? Setting goals is part of organizational life and a powerful way to keep employees aligned and clear about expectations. But how tough should the goals be? How high should you set the bar? Some leaders like to set goals at a low to moderate level, based on the concept that they want everyone to be successful. They believe that success increases employee motivation and satisfaction. A second approach is to set the goals fairly high, expecting that a good portion of the employees will achieve them, but everyone has to work pretty hard to be successful. The third approach is to make the goals so high that only the very best performers might attain them, but not too often. This is based on the premise that if you set the bar really high then everyone will work their hardest to go as far as they can. However, stretch goals can have a tradeoff between the positive and negative effects. On the positive side, it can increase high work performance since it enables employees to reach their fullest potential. Sometimes employees find stretch goals very motivating and make it a challenge to attain it, because managers generally attach incentives such as recognition and other forms of rewards for attaining these goals. Nevertheless, stretch goals also have negative effects and this is the stress that employees go through when unrealistic goals are set by...
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...have to do a lot of work outside of classes. In fact, students spend more time in books at home than in classes. Every day, I face a choice in whether I should study or do my leisure activities. As I look at those two options, I make a decision using simple decision rules. If I choose to do my homework and keep myself up to date in my courses, then I will probably have better grades at the exams and quizzes, but I won’t really like my evening and go to bed bored. However, if I occupy my time to my leisure activity, I’ll have a better evening, whether I go out with my friends or I pass some time watching sports on TV, but I’ll start being late in my courses and it will be hard to make up for all the time I wasted. To conclude, this trade-off is decided more by what I want now, versus what I later. Hence, I will often choose to study and make my homework, but still give myself a little brake once in a while. ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------...
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...Course Code : ITB 301 Course : International Business Section : 03 Submitted to : Md. Gazi Salah Uddin Senior Lecturer East West University OTOBI FURNITURE: OPPORTUNITY, BARRIERS & POSSIBILITY OF EXPORT DIVERSIFICATION Submitted by Anisur Rahman 2004-2-14-059 Md. Raisul Islam 2006-1-10-015 Nusrat Nur 2006-1-10-037 Md. Atiqul Alam 2007-1-10-101 Date of Submission: 09 April 2009 Md. Gazi Salah Uddin Senior Lecturer East West University Dear Sir, In compliance with your advice for preparing a report on OTOBI FURNITURE we’ve tried our best to carry out what you really wanted. While preparing the report, we have followed standard methodology to take out findings and real condition. As per the direction of you, we have tried our best to highlight the findings, opportunities and problems through applying our acquired knowledge by studying this course. We sincerely hope this report will fulfill the requirements suggested by you. We are happy to get this kind of report. If you need any kind of assistance in interpreting...
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...ignored. Please see the other helpful writing resources in the Tutorials and Guides section of the Center for Writing Excellence. Thank you for using WritePoint. Globalization Questionnaire Globalization is simply the shift towards [The preferred spelling is "toward"] both a more integrated and a more interdependent economy (Hill, 2009). While ["While" is accurate in linking simultaneous events (meaning "during"), but if that is not the case here, use "although," "whereas," "and," or "but"] not all of the theories that surround traditional international trade support the concept of globalization there are a few that do such as the Heckscher-Ohlin Theory [Do not capitalize the name of a theory unless it contains a proper noun (someone's name)] , the New Trade Theory, Porter’s Theory, and the Product Life-Cycle (Hill, 2009). Drivers of Globalization There are two primary drivers of globalization, declining trade and [in academic writing, if this is a series, place a comma...
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...Exercise Two Development of the Cochlear implant: Drawing upon New Trade Theory and Porter’s Theory of National Competitive Advantage as discussed in the lecture, outline the case for government assistance to emerging industries. Relate your answer to the Cochlear Case. Without government funding, would it have been possible to develop this product in Australia? Prior to government funding, Professor Clark was able to reach the prototype stage of the development of the Cochlear Implant. However, without government funding, there would have been inadequate finances and resources to commercialise the product and make it available to the public. The Australian governments role in the development of this product supports the theory of government role in supporting emerging products outlined in Porters Theory of National Competitive Advantage. The theory outlines that through strict product standards, focus on specialised factor creation and enforcing antitrust laws, governments can encourage organisations to a more competitive level. Australia has advantageous “Factor Conditions” for the development of a technology such as the Cochlear implant, due to being a first world country with leading technology. The “Demand Conditions” for the Cochlear Implant stretched further than simply Australia - as evident by the 50,000 cases in Japan. Furthermore, the supporting industries - such as “Nucleus” aided in the internationalisation of the product as it progressed into...
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...structure. The modern theory of capital structure began with the famous proposition of Modigliani and Miller that described the conditions of capital structure irrelevance. The financial crisis during 2008 and 2009 forced financial economists to look critically at capital structure theory because the problems faced by many companies stemmed from their financing policies. The first of capital structure theory is trade-off theory. In contrast to dividends, interest paid on debt reduces the firm’s taxable income. Debt also increases the probability of bankruptcy. Trade-off theory suggests that capital structure reflects a trade-off between the tax benefits of debt and the expected costs of bankruptcy. Although trade-off theory predicts that the marginal tax benefit of debt should be equal to the marginal expected bankruptcy cost, the empirical evidence is mixed. Some researchers argue that the former is greater than the latter because direct bankruptcy costs are small and the level of debt is below optimal. Additionally, including personal taxation in the basic model can reduce the tax advantage of debt because tax rates on the return from equity such as dividends or capital gain are often reduced. The second capital structure theory is pecking order theory. The researcher found the key element of pecking order theory is asymmetric information between firm’s insiders and outsiders. The empirical evidence on pecking order theory is mixed. In the pecking order theory also have extension...
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...the trade-off theory, pecking-order theory and agency cost. Besides, capital structure may influence towards the shareholders and the company taxes. An argument also occurred since there is different explanation about capital structure between Miller Theorem and Myer Theorem. The purpose of the literature review is to gain our knowledge and have a truly...
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...foreign country importing agent Contract with a foreign country importing agent Establish a foreign subsidiary that imports and distributes License production to a foreign manufacturer who distributes Establish a foreign subsidiary, either via acquisition or greenfield investment, that manufactures and distributes How would you advise RIM? It must be noted that the Chinese government forces foreign firms to share technology with local partners. Refer to the following two papers in your response: Distance Still Matters by Pankaj Ghemawat Target Markets and Modes of Entry by Cornelis A. De Kluyver Limit your answer to 3 pages of text, double spaced, 12 point font, and normal margins. 1 Question 3. The Ricardian Model of International Trade Limit your answer to 3 pages of text. Suppose there are 2 countries. In Country A, it takes 2 hours of labour to produce 1 unit of Cloth and 4 hours of labour to produce...
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...Investor dapat berhutang dengan tingkat suku bunga yang sama dengan perusahaan Investor mempunyai informasi yang sama seperti manajemen mengenai prospek perusahaan di masa depan Tidak ada biaya kebangkrutan Earning Before Interest and Taxes (EBIT) tidak dipengaruhi oleh penggunaan dari hutang. Para investor adalah price-takers. Jika terjadi kebangkrutan maka aset dapat dijual pada harga pasar (market value). Teori MM dengan pajak Teori MM tanpa pajak dianggap tidak realistis dan kemudian MM memasukkan faktor pajak ke dalam teorinya. Pajak dibayarkan kepada pemerintah, yang berarti merupakan aliran kas keluar. Hutang bisa digunakan untuk menghemat pajak, karena bunga bisa dipakai sebagai pengurang pajak. 3) Teori Trade-Off dalam Struktur Modal Menurut trade-off teory yang diungkapkan oleh Myers (2001), “Perusahaan akan berhutang sampai pada tingkat hutang tertentu, dimana penghematan pajak (tax shields) dari tambahan hutang sama dengan biaya kesulitan keuangan (financial distress)” (p.81). Biaya kesulitan keuangan (Financial distress) adalah biaya kebangkrutan (bankruptcy costs) atau reorganization, dan biaya keagenan (agency costs) yang meningkat akibat dari turunnya kredibilitas suatu perusahaan....
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...Pecking Order, Trade-off, Signaling, and Market-Timing Theories of Capital Structure: a Review Anton Miglo University of Bridgeport 2010 Online at http://mpra.ub.uni-muenchen.de/46691/ MPRA Paper No. 46691, posted 6. May 2013 19:07 UTC The Pecking Order, Trade-off, Signaling, and Market-Timing Theories of Capital Structure: a Review Anton Miglo Associate professor, University of Bridgeport, School of Business, Bridgeport, CT 06604, phone (203) 576-4366, email: amiglo@bridgeport.edu. This version: 2013 Initial version: 2010 Abstract. This paper surveys 4 major capital structure theories: trade-off, pecking order, signaling and market timing. For each theory, a basic model and its major implications are presented. These implications are compared to the available evidence. This is followed by an overview of pros and cons for each theory. A discussion of major recent papers and suggestions for future research are provided. Introduction The modern theory of capital structure began with and the famous proposition of Modigliani Miller (1958) that described the conditions of capital structure irrelevance. Since then, been changing these conditions to explain factors driving capital many economists have structure decisions. Harris and Raviv (1991) synthesized major theoretical literature in the field, related these to the known empirical evidence, and suggested promising avenues for future research. They argued that asymmetric information theories of capital...
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...ECO/212 Final Examination Study Guide This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar with, refer to the Student Guide for that particular week. The Student Guide provides a breakdown of the readings that align to the Final Examination questions. Week One: Principles of Economics Objective: Explain how the principles of economics relate to decision-making, interaction, and the workings of the economy as a whole. 1. Economists make use of assumptions, some of which are unrealistic, for the purpose of a. teaching economics to people who have never before studied economics b. advancing their political agendas c. developing models when the scientific method cannot be used d. focusing their thinking Objective: Compare and contrast economic systems. 2. In a market economy, a. supply determines demand and, in turn, demand determines prices b. demand determines supply and, in turn, supply determines prices c. the allocation of scarce resources determines prices and, in turn, prices determine supply and demand d. supply and demand determine prices and, in turn, prices allocate...
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...Intercontinental University Online Unit 5 IP 1. According to James E. Anderson, Heckscher Ohlin trade theory predicts that trade allows countries to put away factor services as if it were in a totally conformed world, smoothing out differences in national factor endowment. Heckscher Ohlin theory of comparative advantage was created as an alternative to the Ricardian model and had a rastional duty. The differences in labor productivity were the explanation given by Ricardo for comparative advantage. Trade is due to differences in relative prices that would obtain in the absence of trade, and an average of each country’s citizens gain from such trade. 2. The distribution of income is affected by trade and is controlled by trading partners as well as in clearing up international trade patterns in such a way that countries have similar continuous returns to scale production functions for each good, but different amounts of capital relative to their labor supply. In the lack of trade, goods which call for large amounts of labor comparative to capital would be relatively less expensive in the other labor rich countries and relatively be of different economic transition of comparative advantage that countries exports goods would have lower relative prices in the absence of trade as this theory is one that is likely to occur to many economist as they approach the problem, one in which contains labor, land and capital is exogenous...
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...ECO/212 Final Examination Study Guide This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar with, refer to the Student Guide for that particular week. The Student Guide provides a breakdown of the readings that align to the Final Examination questions. Week One: Principles of Economics Objective: Explain how the principles of economics relate to decision-making, interaction, and the workings of the economy as a whole. 1. Economists make use of assumptions, some of which are unrealistic, for the purpose of a. teaching economics to people who have never before studied economics b. advancing their political agendas c. developing models when the scientific method cannot be used d. focusing their thinking Objective: Compare and contrast economic systems. 2. In a market economy, a. supply determines demand and, in turn, demand determines prices b. demand determines supply and, in turn, supply determines prices c. the allocation of scarce resources determines prices and, in turn, prices determine supply and demand d. supply and demand determine prices...
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