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Part F: Supply: Alternative Strategies
Part F: Supply: Alternative Strategies

... Identify some of the potential strengths and weaknesses of businesses having their value chains located in a variety of different countries. The key advantage from operating a global value chain is that the company can locate each dimension in the most effective place, whether in terms of costs, qua ...
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... hence demand is rather inelastic, whereas recreational tourism may be more optional and hence price-elastic.  Classical economic theory dictates that to obtain profit maximization, the airline should fix fares to equate the levels of marginal revenue in the two ...
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... c. Suppose this economy opens to trade and the world price of this good is $80. Describe what happens in this market when this economy opens to trade. In your answer identify 1) whether this country imports or exports the good; 2) the numeric level of imports or exports; 3) who benefits from this ec ...
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... trucking (routes set, prices regulated) airlines (routes set, prices regulated) telephone service (prices regulated) automobiles (various regulations - e.g. airbags) smoking (banned in public areas in many places) milk (in many places, can't be shipped across county lines) legal services (bans on ad ...
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... Obviously they have similar characteristics. In marketing terms this is referred to as homogeneity or being homogeneous. 5. Target segment or market refers to the actual representative customer that the company has composed its mix for. A company seeks a similar reaction or response to its products ...
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Grey market

A grey market (sometimes called a parallel import, but this can also mean other things; not to be confused with a black market or a grey economy) is the trade of a commodity through distribution channels which are legal but are unofficial, unauthorized, or unintended by the original manufacturer. The most common type of grey market is the sale, by individuals or small companies not authorised by the manufacturer, of imported goods which would otherwise be either more expensive in the country to which they are being imported, or unavailable altogether. An example of this would be the import and subsequent re-sale of Apple products by unlicensed intermediaries in countries such as South Korea where Apple does not currently operate retail outlets and licensed reseller markups are high.
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