Lexil Company is an Australian multi-national company specialized in textile industry like Benetton corporation, the French one. Both companies established one of their affiliates in Egypt. After three years, Lexil Company tried to access to India through a new affiliate to be able to reduce the labour cost and offer a more competitive price than its competitor. Which of the below methods may be viewed as the most effective in protecting Benetton company against its exposure after the new strategy adopted by Lexil Company? O a. Money market hedgés O b. Futures market hedging O . Forward contract hedges O d. Geographical diversification

Lexil Company is an Australian multi-national company specialized in textile industry like Benetton corporation, the French one. Both companies established one of their affiliates in Egypt. After three years, Lexil Company tried to access to India through a new affiliate to be able to reduce the labour cost and offer a more competitive price than its competitor. Which of the below methods may be viewed as the most effective in protecting Benetton company against its exposure after the new strategy adopted by Lexil Company? O a. Money market hedgés O b. Futures market hedging O . Forward contract hedges O d. Geographical diversification

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 2E

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Company A and Company B are competing oligopolists. Both companies are considering increasing or maintaining their prices The payoff matrix shows the profits of the companies in millions based on their possible actions. Company B Increase Price Maintain Price Company A Increase Price $50, $40 $35, 530 Maintain Price 555, $45 $60, $35 The government offers a $5 milon subsidy to maintain current pricing. What is the expected outcome of the new payoff matrix, given the subsidy? The Nash equilibrium changes, and both companies will maintain their prices O The Nash equilbrium changes, and both companies will increase their prices O The Nash equilibrium remains the same, and both companies will increase their prices O Company A wit increase its price, whie Company B maintains its price. O Company A will maintain its price, while Company Bincreases ts price.
Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companiesthroughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand. The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high. Discuss a demand-related factor and supply-related factor, that may influence exchange rate movements in Jamaica and Barbados. Include any possible government-related factors and be specific. (Tie your description to the specific Duncan Multinational Corporation case background provided here).
Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companiesthroughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand. The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high. using research on the situation in St.Lucia or any other Caribbean country of your choice, answer the following questions: a) In your opinion, which two factors affecting exchange rates, has the most impact in your, or your chosen, jurisdiction? ( b) Does the most important factor…
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Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to variouscompaniesthroughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand.The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.Section 1a) Duncan Multinational Corporation plans to penetrate either the Jamaican, Barbados or Guyana market.Discuss two factors that deserve to be considered in deciding which market is more feasible?b) Discuss a demand-related factor and supply-related factor, that may influence exchange rate…
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Toyota Pregame Show First Quarter Chevrolet Pregame Show $5million $5 million $3 million $3 million First Quarter $6 million $6 million Based on these answers, Toyota has a dominant strategy to: $4 million always purchase a pregame ad, regardless of what Chevrolet does. always purchase a first quarter ad, regardless of what Chevrolet does. only purchase a pregame ad if they know Chevrolet will do the same. $4 million
Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companies throughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand. The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high. Section 1 a) Duncan Multinational Corporation plans to penetrate either the Jamaican, Barbados or Guyana market. Discuss two factors that deserve to be considered in deciding which market is more feasible? b) Discuss a demand-related factor and supply-related factor, that may influence exchange…
Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companies throughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand.The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.Section 1 Duncan Multinational Corporation plans to penetrate either the Jamaican, Barbados or Guyana market. In 600 words, discuss two factors that deserve to be considered in deciding which market is more feasible? in 600 words, discuss a demand-related factor and supply-related factor, that may…
Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companies throughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand.The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high. Section 2Consider the information in Unit two material and using your own research on the situation in Jamaica, answer the following questions:a) In 600 words and In your opinion, which two factors affecting exchange rates, has the most impact in Jamaica? b) in 500 words, does the most important…