A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 110,000 19,950 Labor (hours) 20,100 15,100 Raw materials (currency) $ 19,980 FC* 20,100 Capital equipment (hours) 60,300 5,100 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) c. Calculate raw material productivity figures (units/$ where $1 = FC 10). (Round your answers to 2 decimal places.)

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 110,000 19,950 Labor (hours) 20,100 15,100 Raw materials (currency) $ 19,980 FC* 20,100 Capital equipment (hours) 60,300 5,100 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) c. Calculate raw material productivity figures (units/$ where $1 = FC 10). (Round your answers to 2 decimal places.)

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter1: Multinational Financial Management: An Overview

Section: Chapter Questions

Problem 25QA

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A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDCSales (units) 100,000 20,000Labor (hours) 20,000 15,000Raw materials (currency) $20,000 FC 20,000Capital equipment (hours) 60,000 5,000a. a. Calculate partial labor and capital productivity i gures for the parent and subsidiary. Do the results seem confusing?b. Compute the multifactor productivity i gures for labor and capital…
A firm's value added refers to the dollar value of O A. a firm's sales revenue minus the firm's protits O B. a firm's sales revenue minus the firm's purchases of intermediate products from other firms. O C. a firm's total sales revenue O D. the intermediate products a firm buys from other producers. Suppose U.S. drivers purchased $50 billion of ExxonMobil produced gasolinc duning a rocent year, with one-hali purchased d'rectly fem ExxontMobil owied gas stations iariri onie-half from independent (or third-party) gas statons. Suppose lurther that ExxonMobil purchased the oil (which it refined into gasolitie) from foreign producers for $20 hillion and thal ii recoives B percent of the ses revenuo that itidependent stations nenerate from selling ExxonMobil gasoline. In this case, the value added by ExxonMobil to U.S. GDP is S bilion ( nler your response as an integer Click to select your answer(s). 21:23 2203.2021
Whitehill Chemicals has two operating divisions. Its Formulation Division in the United States mixes, processes, and tests basic chemicals, and then ships them to Ireland, where the company's Commercial Division uses the chemicals to produce and sell various products. Operating expenses amount to $27.0 million in the U.S. and $79.0 million in Ireland exclusive of the costs of any goods transferred from the U.S. Revenues in Ireland are $205 million. If the chemicals were purchased from one of the company's Irish mixing divisions, the costs would be $40.0 million. However, if it had been purchased from an independent U.S. supplier, the cost would be $53.0 million. The marginal income tax rate is 20 percent in the U.S. and 12 percent in Ireland. Required: What is the company's total tax liability to both jurisdictions for each of the two alternative transfer pricing scenarios ($40.0 million and $53.0 million)? Note: Enter your answers in dollars and not in millions of dollars. Total tax…
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Suppose that Japan and Indonesia have unit labor requirements for producing one tonne of steel and one tonne of oil shown in the following table: Steel Oil Unit Labour Requirements Japan 4 2 Indonesia 4 5 a) Determine which country has a comparative advantage in each good. b) If Japan and Indonesia each have 100 units of labour, calculate the maximum production of each good that both of the countries can produce. c) Before trade, Indonesia allocates 1/5 of its total units of labour to produce steel and the rest to produce oil while Japan allocates 3/5 of its total units of labour to produce steel and the rest to produce oil calculate how many tonnes of steel and oil can be produced by both of the countries. d) Both of the countries agree that 1 tonne of steel can be exchanged for 1 tonne of oil. Calculate the net gains after trade is allowed if Japan consumes 30 tonnes of oil domestical.
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ABC Inc. produces home appliances and sells them in the U.S. It outsources the production of the appliances to a Vietnamese manufacturer, and the imported appliances are priced in dollars. Its major competitor for appliances is located in China. Based on this information, ABC Inc. is subject to ____ exposure. A. economic B. translation C. economic and transaction D. transaction
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