What effects do deviations from the law of one price have on absolute purchasing power parity?
What will be an ideal response?
Answer: Any of the forces that create a deviation from the law of one price can also cause a deviation from PPP. In addition, even if the law of one price were satisfied for all goods, if the consumption bundles in the two countries put different weights on the goods because of taste differences across countries, relative price changes would be reflected in deviations from PPP.
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A firm has a competitive advantage when it is able to outperform the competition, providing customers with a desired benefit the competition does not
Indicate whether the statement is true or false
Which of the following is a condition included in a credit card agreement?
A. A charge is levied just for the privilege of having a credit card. B. Transfer of balance from one credit card to another is not charged. C. A late fee is notassessed if a payment is not received within the grace period. D. An annual fee is charged only if your charges exceed your credit limit.
Which of the following is not a question in the corporate entrepreneurial planning process?
a. Does the firm encourage and reward entrepreneurs? b. Do employees frequently require permission? c. Does the firm direct resources toward entrepreneurship? d. Has the firm met government regulations for innovation?
Explain value chains and the differences between primary and support value activities.
What will be an ideal response?