than exports so U.S. labor and other resources are more focused in the imports than the exports industries (McConnell, Brue, & Flynn, 2011). Using the Comparative Advantage, the U.S. has the ability to produce goods and services at a lower opportunity cost than other counties (Amadeo,…
Staff Competence and Procurement Planning Boyatzis (2008), define competency as a capability, ability or an underlying characteristic of an individual which is casually related to effective or superior performance. It is a set of related but a different set of behavior organized around an underlying construct, which we call the “intent”. The behaviors are alternate manifestations of the intent, as appropriate in various situations or times. Competence is a cluster of related abilities,…
formula (“The Specific Company Risk Premium: A New Approach” 2017, pp. 9-11), applied as follows: 1.40 percent for financial risk, as measured by the total debt ratio of 1.64. 0.84 percent for operational risk, as measured by the 0.56 ratio of fixed costs to…
price increases and cost increases all by the same amount– no change to profit. Here both the price and cost are increased in the same way so there is no change in profit. In this case also the company is not earning any profit and not increasing the company’s performance by increasing the value. 3. In the third case the value increases, price increases but cost increase is greater than price increase; profit is reduced. Here both the price and the cost are increased but the cost gets higher…
THE CASE On a rainy Thursday evening, as Mr. Pramod Kumar, the AGM-Industrial Relations-TATA Motors, was sipping his cup of tea, he had some unexpected visitors. A five-minute meeting with the visitors turned Mr. Kumar’s day on its head. Ramdas Soren, the local MLA of JMM (Jharkhand Mukti Morcha) in 2013 along with Santosh, the leader of the contract labour union in TATA Motors affiliated to JMM threatened to go on an indefinite strike if their demands remained unmet. Considering the seriousness…
determine whether Ocean Carriers should launch the two year production of a new capsize carrier incurring costs of $39 million. To thoroughly analyze this decision, various factors should be considered such as net present value of future cash flows, current and future expectations of supply and demand determining costs of production and expected revenues from future orders. It is recommended to minimize costs that Ocean Carriers consider producing the capsize carrier in Hong Kong as it provides…
an impure oligopoly is the automobile industry, which has only a few producers who produce a differentiated product. Globalization The revolution in information technology, the liberalization in the movement of factors of production (labor and capital) and globalization (multinational companies) are bringing dramatic changes in the way modern corporations conduct their business. To an extent also these change drivers (globalization and the prevalence of multinationals) are reducing the…
Cost data are initially used to determine the areas of the project which represent poor value and later alternative proposals can be priced with that data .Norton, (1995) suggests that a dual estimate preparation and reconciliation be done to make the study…
varying quantities of two and/or more inputs. An indifference curve mapping helps us to arrive at the utility-maximization of consumers, the isoquant mapping deals with the cost-minimization of producers. Isoquants are ideally drawn alongside isocost curves in capital-labour graphs, showing the technological trade-off between capital and labour in the production function, and also the decreasing marginal returns of both inputs. Increasing one input while holding the other one constant inevitably…
Accounting profit calculates total revenue subtracting explicit costs. Explicit costs are the physical costs of production such as capital spent in production. Economic profit also calculates total revenue, but also subtracts implicit costs, which are the opportunity costs of production. One uses Economic profit to calculate the total value of a company, because it includes buildings, equipment, and other things not included in explicit costs. 7) Describe and explain the Production Function. …