Answers to the Problems – Chapter 12
... Microsoft’s pricing strategy when it sells an organization blanket license for Windows and Office makes “it next to impossible for rivals to compete.” Microsoft tries to “undermine its competitor's products.” Your students’ answers will depend on their assessment of the evidence. Mr. Nader would ass ...
... Microsoft’s pricing strategy when it sells an organization blanket license for Windows and Office makes “it next to impossible for rivals to compete.” Microsoft tries to “undermine its competitor's products.” Your students’ answers will depend on their assessment of the evidence. Mr. Nader would ass ...
The Market for Illegal Goods
... increases in E) will reduce the total resources spent by drug traffickers to bring drugs to market. In contrast, and paradoxically, when demand for drugs is inelastic, total resources spent by drug traffickers will increase as the war increases in severity, and consumption falls. With inelastic dema ...
... increases in E) will reduce the total resources spent by drug traffickers to bring drugs to market. In contrast, and paradoxically, when demand for drugs is inelastic, total resources spent by drug traffickers will increase as the war increases in severity, and consumption falls. With inelastic dema ...
The interactive financial effects between corporate
... To put it differently, if a company does ‘good’ in order to compensate for something ‘bad’, will it also do ‘well’ (or at least better) in financial terms? Alternatively, if a company invests in CSR to create a strong reputation concerning its social responsibility, but is also involved in socially ...
... To put it differently, if a company does ‘good’ in order to compensate for something ‘bad’, will it also do ‘well’ (or at least better) in financial terms? Alternatively, if a company invests in CSR to create a strong reputation concerning its social responsibility, but is also involved in socially ...
The Fixed Factor Proportions Model of Production and Trade
... ambiguous. Given the rescaling suppose the home cone spans the foreign cone, 1 > a12 > a12* and 1 > a21* > a21. Output ratios and exports would then depend on degrees of factor intensity. A country would more likely export a product using a factor intensively if there were less intensity of that fac ...
... ambiguous. Given the rescaling suppose the home cone spans the foreign cone, 1 > a12 > a12* and 1 > a21* > a21. Output ratios and exports would then depend on degrees of factor intensity. A country would more likely export a product using a factor intensively if there were less intensity of that fac ...
How Does FDI Affect Host Country Development?
... With regard to backward linkages and spillovers, the automotive and electronics multinationals in Mexico, Brazil, Malaysia, and Thailand assiduously avoided horizontal technology transfer, insisting upon whole or majority ownership of their plants to keep what they called “leakage” of technology and ...
... With regard to backward linkages and spillovers, the automotive and electronics multinationals in Mexico, Brazil, Malaysia, and Thailand assiduously avoided horizontal technology transfer, insisting upon whole or majority ownership of their plants to keep what they called “leakage” of technology and ...
Fairly Good Plans
... consumption path c, such that consumption at time t is ct . Suppose there exists a welfare ordering, or valuation, of consumption paths. If c is equivalent, in welfare terms, to the balanced growth path yielding consumption y& at t, we shall call y the balancedgrowth equivalent (BGE) of c. For such ...
... consumption path c, such that consumption at time t is ct . Suppose there exists a welfare ordering, or valuation, of consumption paths. If c is equivalent, in welfare terms, to the balanced growth path yielding consumption y& at t, we shall call y the balancedgrowth equivalent (BGE) of c. For such ...
The Distortive Effects of Antitrust Fines Based on Revenue
... social welfare and also for the incidence of fines in different industries (we will call them all, for short, ‘distortions’) that result from the current fining policies in the EU, US and most other jurisdictions that follow their lead. The first ‘distortion’ is linked to fine caps rather than fines ...
... social welfare and also for the incidence of fines in different industries (we will call them all, for short, ‘distortions’) that result from the current fining policies in the EU, US and most other jurisdictions that follow their lead. The first ‘distortion’ is linked to fine caps rather than fines ...
Brander–Spencer model
The Brander–Spencer model is an economic model in international trade originally developed by James Brander and Barbara Spencer in the early 1980s. The model illustrates a situation where, under certain assumptions, a government can subsidize domestic firms to help them in their competition against foreign producers and in doing so enhances national welfare. This conclusion stands in contrast to results from most international trade models, in which government non-interference is socially optimal.The basic model is a variation on the Stackelberg–Cournot ""leader and follower"" duopoly game. Alternatively, the model can be portrayed in game theoretic terms as initially a game with multiple Nash equilibria, with government having the capability of affecting the payoffs to switch to a game with just one equilibrium. Although it is possible for the national government to increase a country's welfare in the model through export subsidies, the policy is of beggar thy neighbor type. This also means that if all governments simultaneously attempt to follow the policy prescription of the model, all countries would wind up worse off.The model was part of the ""New Trade Theory"" that was developed in the late 1970s and early 1980s, which incorporated then recent developments from literature on industrial organization into theories of international trade. In particular, like in many other New Trade Theory models, economies of scale (in this case, in the form of fixed entry costs) play an important role in the Brander–Spencer model.