Explain and show your workings.

Here is some balance of payments data for a country (in bln USD):

Merchandise export = 200

Merchandise import = 180

Primary income payments from abroad = 50

Primary income payments to non-residents = 70

Unilateral international transfers from abroad = 10

Unilateral international transfers to non-residents = 5

Capital account balance = 0

Change in foreign direct investment to abroad = 15

Change in foreign direct investment from abroad = -25

Balance on portfolio investmenti= 50

Balance on other investmentii= -80

Change in international reservesiii= -10

Net errors and omissions = -30

Find the balance on trade in services for the given period.

Question.

Provide a summary of Comfort Systems USA Industry analysis based off this information. Information below:

3.2 Industry Analysis

3.2.1 Description of the Industry

NAICS Code 238220 states that "This industry comprises establishments primarily engaged in installing and servicing plumbing, heating, and air-conditioning equipment. Contractors in this industry may provide both parts and labor when performing work. The work performed may include new work, additions, alterations, maintenance, and repairs." The HVAC, which stands for Heating, Ventilation, and Air Conditioning, market is relatively fragmented. The industry is comprised of numerous companies, mostly small local mom and pop shops but also includes a large number of multinational firms. When Comfort Systems USA was founded, it comprised of 12 major companies that were engaged in the HVAC business. As time continued, Comfort Systems USA continued to acquire more businesses to help them continue to carve out a bigger market share. They now are comprised of 35 operating companies and operate in over 114 different cities across the United States. Raw and construction materials are the major supplying industry for this focal market. The major buying industry for HVAC equipment and services is very diverse. 33% of Comfort Systems USA's business revenue comes from the Industrial sector, 15.8% from education (schools), and office buildings make up another 13.3%. The needs for HVAC cover every market from residential to commercial needs. The current HVAC global market is $240.8 billion, and by 2030 its projected to be $367.5 billion. The US Market size is currently $84.5 billion and it's expected to grow by 3.4% from 2020-2025.

3.2.2.1 Market Size

The current industrial sales revenue in the US market for HVAC is $84.5 billion. The market is comprised of about 106,000 different companies, and employees roughly 505,000. The annual growth for the HVAC market for businesses from 2015-2020 was only 0.8% and for employment was 1.9%. The expected annual growth for 2020-2025 shows that number of HVAC businesses to grow 2.0%, and employment to grow 3.0%. There is a trend of new entrants to the market which is going to further increase employment but also increase competition. The US Market revenue is small compared to the global market, which nets $240.8 billion in revenue per year. The HVAC industry is mostly a service-oriented industry with no international trade, as goods are not passed from one country to another. This means that both imports and exports are low and steady. The majority of industry participants are domestic, small- or medium-sized operators. However, there are some multinational companies that offer heating, ventilation and air-conditioning and refrigeration services in a wide variety of markets, including industrial, municipal, multifamily and commercial. Multinational construction companies include both foreign-owned operators in the United States and domestically owned companies offering services abroad. One example of a multinational company would be Daikin Industries. They are headquartered out of Japan, but have a market capitalization of $41.59 billion in the United States.

3.2.2.2 Market Growth Rate

The Industries average revenue growth rate from 2015 to 2020 was -0.8%. While the revenue growth rate was negative, the profit margin actually increased by 0.1%. Multiple different sources have claimed that the HVAC industries growth rate is anywhere from 3-6% CAGR. There are multiple drivers for this thought. As the world recovers from COVID as it will increase consumer spending power, and increase disposable income. As we are already seeing, the housing market is booming due to it's record low interest rates. The need for new HVAC units in the residential area has been steadily increasing month over month. Also, the need for HVAC units that are able to filter out the virus has increased tremendously. Multiple different companies now offer high efficiency units that are capable of filtering out air borne viruses. There is also the Global Warming factor that needs to be considered. As shown on the graph below from Statisa, as the world has progressively gotten warmer, there has been a significant increase in number of cooling degree days (using A/C unit to cool). In 1950, it averaged about 850 days cooling days while in 2019, we have hit 1500 days. In less than 100 years we have almost doubled the amount of our A/C usage in order to keep our homes and businesses cool.

3.2.2.3 Industry Trends

1) Are there any changes recently or expected in the near future in terms of the total number of firms in the industry, location distribution of the firms, abnormal industrial dynamics (such as merger and acquisition, new entrants, and declining incumbents), etc?

A.Although the pandemic of 2020 did affect the industry as almost any other business.

B.Industry is expected to increase in the following years. As the contrustion and developing of new building facilities rise so will the entrants of new HVAC companies.

2) Are there any new products, production processes, technology innovation (improvements) present recently or expected in the near future?

New technology innovation and advancement in the HVAC industry is very common. Almost essential to have the latest most renowned system that is energy effient most of the techiniques employed by HVAc techs have not changes significantly. Using smart technology as we call it now such as apps allowing us to control any system at any given time and at any given place; with the one and only purpose to save money and save our planet.

3) Are there any changes in the scope of the market such as the pace of globalization; product/business diversification of current large companies?

Close to zero changes in the scope of the market. The majority of the industry does business domestically. With no international trade and mainly focuses in domestic business..

ii.

Q. Study this graph and answer questions 26 and 27 below. MC ATC Priceif per unit) ANC 9 10 Quantity Q26. Refer to the graph above. What price will the monopolist charge in order to maximize profit? (units per day) a $5 b. $10 C. $3 d. $4 Q27. Refer to the graph above: at the profit-maximizing price and output, the total revenue is-. e$7 a.$18 b. 516 C. $10 d. $7 G. 521 Q28. Which three of the following characteristics apply to oligopoly? a. Each firm faces a horizontal demand curve. b. Each firm faces a downward sloping demand curve. C. The Industry is often characterized by extensive non-price competition. d. Many small firms account for a high percentage of industry output. d. A few large firms account for a high percentage of industry output. Q29. To achieve more market power, firms can- a. Lobby the government to eliminate barriers to entry. b. Reduce their costs of production. C. Raise their profit margin on prices. d. Advertise that they charge low prices. e. Differentiate their products from the products of their rivals. Q30. Public disclosure supports competition by.- a. concentrating information in the hands of the government. b. converting private businesses into government agencies. c. providing buyers and sellers with information. d. revealing competitive trade secrets. Q31. Instead of being employed at a printing company at a salary of $25,900 per year, Magda starts her own printing firm. Rather than renting a building that she owns to someone else for $10,000 per year, she uses it as the location for her company. Her costs for workers, materials, advertising, and energy during her first year are $125,000. If the total revenue from her printing company is $155,000, what is Magda's total economic profit? .... Q32. Which of the following is not a determinant of a consumer's demand for a commodity? a. Income b. Population C. Prices of related good's d. Tastes e. Al the above Q33, One difference between perfect competition and monopolistic competition is that: a. In perfect competition, the products are slightly differentiated between tres. There are a smaller number of firms in perfectly competitive industries. C Monopolistic competition has barriers to entry, whereas perfect competition has none. d. Firms in monopolistic competition have some degree of market power. There are a larger number of firms in monopolistic competition. Q34. If consumer income declines, then the demand for- a normal goods will increase b. inferior goods will increase. c. substitute goods will increase d. complementary goods will increase. 035. The relationship between quantity supplied and price is -- and the relationship between quantity demanded and price is-. bj inverse, direct chinverse, inverse d) direct, direct a) direct, inverse 036A. "When the price of a product rises, consumers shift their purchases to other products whose prices are now relatively lower." This statement describes -. c) the substitution effect d) the law of supply e] the income effect aj an inferior good bj the rationing function of prices