The effect of offshoring on the economy of Country U. Introduction: The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

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Answer 1

Question

Chapter 17, Problem 1DQ

Summary Introduction

To determine: The effect of offshoring on the economy of Country U.

Introduction:

The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Expert Solution & Answer

Explanation of Solution

Determine the effects of offshoring on the economy of Country U:

The effect of offshoring has both advantages and disadvantages on the economy of Country U. The products that are produced offshore and important would have lower prices than the products that are produced in-home. The major advantage of offshoring to the people of Country U is that the people can spend more money on other goods and services.

The disadvantage of offshoring is that the people who are involved in producing the products inside the country will lose their jobs due to offshoring. This will lead to unemployment, retraining, possible relocation, and job search. However, it is not a long-term loss, as new industries can hire the labors. Fair trade is one in which both countries that are involved in the fair trade would benefit for long run and both countries would engage in free trade. In fair trade, the country would actually produce a products based on the national advantage.

The economic theory of fair trade such as foreign government would constrain free trade and foreign government uses money manipulation that are not conformed to reality.

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Answer 2

Question

Chapter 17, Problem 1DQ

Summary Introduction

To determine: The effect of offshoring on the economy of Country U.

Introduction:

The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Expert Solution & Answer

Explanation of Solution

Determine the effects of offshoring on the economy of Country U:

The effect of offshoring has both advantages and disadvantages on the economy of Country U. The products that are produced offshore and important would have lower prices than the products that are produced in-home. The major advantage of offshoring to the people of Country U is that the people can spend more money on other goods and services.

The disadvantage of offshoring is that the people who are involved in producing the products inside the country will lose their jobs due to offshoring. This will lead to unemployment, retraining, possible relocation, and job search. However, it is not a long-term loss, as new industries can hire the labors. Fair trade is one in which both countries that are involved in the fair trade would benefit for long run and both countries would engage in free trade. In fair trade, the country would actually produce a products based on the national advantage.

The economic theory of fair trade such as foreign government would constrain free trade and foreign government uses money manipulation that are not conformed to reality.

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Answer 3

Question

Chapter 17, Problem 1DQ

Summary Introduction

To determine: The effect of offshoring on the economy of Country U.

Introduction:

The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Expert Solution & Answer

Explanation of Solution

Determine the effects of offshoring on the economy of Country U:

The effect of offshoring has both advantages and disadvantages on the economy of Country U. The products that are produced offshore and important would have lower prices than the products that are produced in-home. The major advantage of offshoring to the people of Country U is that the people can spend more money on other goods and services.

The disadvantage of offshoring is that the people who are involved in producing the products inside the country will lose their jobs due to offshoring. This will lead to unemployment, retraining, possible relocation, and job search. However, it is not a long-term loss, as new industries can hire the labors. Fair trade is one in which both countries that are involved in the fair trade would benefit for long run and both countries would engage in free trade. In fair trade, the country would actually produce a products based on the national advantage.

The economic theory of fair trade such as foreign government would constrain free trade and foreign government uses money manipulation that are not conformed to reality.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 1DQ

Summary Introduction

To determine: The effect of offshoring on the economy of Country U.

Introduction:

The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Expert Solution & Answer

Explanation of Solution

Determine the effects of offshoring on the economy of Country U:

The effect of offshoring has both advantages and disadvantages on the economy of Country U. The products that are produced offshore and important would have lower prices than the products that are produced in-home. The major advantage of offshoring to the people of Country U is that the people can spend more money on other goods and services.

The disadvantage of offshoring is that the people who are involved in producing the products inside the country will lose their jobs due to offshoring. This will lead to unemployment, retraining, possible relocation, and job search. However, it is not a long-term loss, as new industries can hire the labors. Fair trade is one in which both countries that are involved in the fair trade would benefit for long run and both countries would engage in free trade. In fair trade, the country would actually produce a products based on the national advantage.

The economic theory of fair trade such as foreign government would constrain free trade and foreign government uses money manipulation that are not conformed to reality.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1DQ

Summary Introduction

To determine: The effect of offshoring on the economy of Country U.

Introduction:

The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Expert Solution & Answer

Explanation of Solution

Determine the effects of offshoring on the economy of Country U:

The effect of offshoring has both advantages and disadvantages on the economy of Country U. The products that are produced offshore and important would have lower prices than the products that are produced in-home. The major advantage of offshoring to the people of Country U is that the people can spend more money on other goods and services.

The disadvantage of offshoring is that the people who are involved in producing the products inside the country will lose their jobs due to offshoring. This will lead to unemployment, retraining, possible relocation, and job search. However, it is not a long-term loss, as new industries can hire the labors. Fair trade is one in which both countries that are involved in the fair trade would benefit for long run and both countries would engage in free trade. In fair trade, the country would actually produce a products based on the national advantage.

The economic theory of fair trade such as foreign government would constrain free trade and foreign government uses money manipulation that are not conformed to reality.

Answer 6

Chapter 17, Problem 1DQ

Summary Introduction

To determine: The effect of offshoring on the economy of Country U.

Introduction:

The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Expert Solution & Answer

Explanation of Solution

Determine the effects of offshoring on the economy of Country U:

The effect of offshoring has both advantages and disadvantages on the economy of Country U. The products that are produced offshore and important would have lower prices than the products that are produced in-home. The major advantage of offshoring to the people of Country U is that the people can spend more money on other goods and services.

The disadvantage of offshoring is that the people who are involved in producing the products inside the country will lose their jobs due to offshoring. This will lead to unemployment, retraining, possible relocation, and job search. However, it is not a long-term loss, as new industries can hire the labors. Fair trade is one in which both countries that are involved in the fair trade would benefit for long run and both countries would engage in free trade. In fair trade, the country would actually produce a products based on the national advantage.

The economic theory of fair trade such as foreign government would constrain free trade and foreign government uses money manipulation that are not conformed to reality.

Answer 7

Chapter 17, Problem 1DQ

Summary Introduction

To determine: The effect of offshoring on the economy of Country U.

Introduction:

The profit leverage effect would reduce the inventory cost which would improve the profit of the firm. When the purchase cost reduces, the profit and sales would increase equally.

Answer 8

Expert Solution & Answer

Explanation of Solution

Determine the effects of offshoring on the economy of Country U:

The effect of offshoring has both advantages and disadvantages on the economy of Country U. The products that are produced offshore and important would have lower prices than the products that are produced in-home. The major advantage of offshoring to the people of Country U is that the people can spend more money on other goods and services.

The disadvantage of offshoring is that the people who are involved in producing the products inside the country will lose their jobs due to offshoring. This will lead to unemployment, retraining, possible relocation, and job search. However, it is not a long-term loss, as new industries can hire the labors. Fair trade is one in which both countries that are involved in the fair trade would benefit for long run and both countries would engage in free trade. In fair trade, the country would actually produce a products based on the national advantage.

The economic theory of fair trade such as foreign government would constrain free trade and foreign government uses money manipulation that are not conformed to reality.