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structure for international operations? How do these variables interact, and which are most important?

2. Discuss the implications of the relative centralization of authority and decision making at headquarters versus local units or subsidiaries. How would a subsidiary manager feel about this variable?

3. What are the four (4) major alternative staffing approaches for international operations? Explain the relative advantages of each and the conditions under which one would choose one approach over another.

4. Develop a cultural profile which might be applicable to many workers in Mexico and discuss the management that can be use.

5. Using Mexico as an example, discuss how one would develop a profile of an effective leader from the research results of the GLOBE project.

[10:54 PM, 10/20/2021] Consider a monopolist with linear demand curve given by P(Y)=a-bY (note: this is the inverse demand), and C(Y)=cY (which is the cost function, where c>0). a) What is the equilibrium quantity, price, and monopoly profit? b) What are the values of consumer surplus, producer surplus and deadweight loss? Show these graphically. c) What is the maximum quantity the monopolist would be willing to sell? d) Show that the monopolist's markup of price over marginal cost is inversely related to the price elasticity of demand. Can you determine this amount? If so, what is it? [10:57 PM, 10/20/2021] Consider the following airfare game between Qantas and Virgin. Suppose Qantas and Virgin are the only two airlines flying from Melbourne to Sydney. The capacity is 150 passengers for each airline. Each airline has two pricing strategies: charge a regular airfare at $300 or charge a discount airfare at $200. The market demand is uncertain and could be either high or low with equal probability. When demand is high, 260 people would like to take the Melbourne- Sydney trip when the airfare is $300, and additional 120 people (so 380 people in total) would like to take the trip when the airfare is $200. When demand is low, 220 people would like to take the trip when the airfare is $300, and additional 100 people (so 320 people in total) would like to take the trip when the airfare is $200. To make our life easier, we assume that discount air tickets always go to the passengers with highest willingness to pay first. Both airlines have to simultaneously set their airfare before demand is realized. When both airlines set the same airfare, they share the market equally. Moreover, both airlines have the same cost structure with TC(q) = 19000 + 70q.

Calculate the expected profit for each airline when both airlines set the airfare at $300. Calculate the expected profit for each airline when both airlines set the airfare at $200. Calculate the expected profit for each airline when the two airlines set different airfares. Construct the payoff matrix for this airfare game between Qantas and Virgin. Find all Nash equilibria of the game. Suppose now demand is high with probability p and low with probability 1 - p. Other things remain unchanged. Con

truct the payoff matrix for this new airfare game and find p*, a threshold value of p, such that ($200; $200) is a Nash equilibrium if and only if p ? p*:

\f1. A country's government runs a budget deficit 4. Unlike a market economy, a command economy when which of the following occurs in uses a given year? (A) more centralized planning in economic (A) The amount of new loans to developing decision making nations exceeds the amount of loans paid (B) consumer sovereignty to make production off by developing nations. decisions (B) Government spending exceeds tax revenues. (C) its resources more efficiently (C) The debt owed to foreigners exceeds the debt (D) price signals in economic decision making owed to the country's citizens. (E) the popular vote in making resource alloca (D) The amount borrowed exceeds the interest tion decisions payment on the national debt. (E) Interest payments on the national debt exceed 5. The value of a country's currency will tend to spending on goods and services. appreciate if 2. A high marginal propensity to consume implies (A) demand for the country's exports increases which of the following? (B) the country's money supply increases (C) the country's citizens increase their travel (A) A small change in consumption when income abroad changes (D) domestic interest rates decrease (B) A high savings rate (E) tariffs on the country's imports decrease (C) A high marginal tax rate (D) An equilibrium level of income near full 6. Which of the following best illustrates an employment improvement in a country's standard of living? (E) A low marginal propensity to save (A) An increase in real per capita gross domestic 3. The transaction demand for money is very closely product associated with money's use as a (B) An increase in nominal per capita gross domestic product (A) store of value C) Price stability (B) standard unit of account (D) A balanced budget (C) measure of value (E) An increase in the consumer price index (D) medium of exchange (E) standard of deferred payment1. Investment means the purchase of- A. Old machines, old buildings and other capital goods B. New machines, new buildings and other capital goods that add to the existing stocks of capital. C. Both D. None of the above. 2. Net investment is equal to- A. Gross investment plus replacement or depreciation; B. Gross investment less replacement or depreciation; C. Gross investment multiply by replacement or depreciation; D. None of the above. 3. Which isare the determinant's of private investment- A. Prospective income from the capital asset: B. Supply price of the capital asset; C. The rate of intered: D. All of the above. 4. Expected reverones from the use of the capital asset minus variable cod is called- A. Prospective income B. Supply price C. Prospective yield D. None of the above. 5. The future retum on the asset is called- A. Prospective income B. Supply price C. Prospective yield D. None of the above. 6. Afterr years, at a rece of interest of o per cent, the present value will be- A AE- (1+ry B. PE (1+r) A C. P= (1-ry (1+r) D. PE