Questions 1. What impacts do economic forecasts have on a firm's functional areas? If management learns from the economi

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Questions 1 What Impacts Do Economic Forecasts Have On A Firm S Functional Areas If Management Learns From The Economi 1 (55.33 KiB) Viewed 61 times

Questions 1. What impacts do economic forecasts have on a firm's functional areas? If management learns from the economic analysis of Country A that wage rates are expected to increase by 10 percent next year, which functional areas of the firm will be concerned? Why will this be of concern to management? 2. What are the differences in the characteristics of eco- nomically developing and developed nations? a 3. Of what importance to marketers is a nation's level of 8. If the clothing industry association to which your firm's German subsidiary belongs could mount a suc- cessful promotional program to cause the Germans to increase their clothing expenditures by 1 percent annually, what would be the total increase in sales for the clothing industry? 9. In 2006, Italy's average labor compensation costs stated in U.S. dollars were $25.07 compared to $16.52 economic development? in 1995, and they were 19.96 euros compared to 26,911 lira. 4. What common problem does the use of GNI per capita a. What was the percentage increase or decrease and population density values present? in dollars? 5. What is the underground economy? Why is the exis- b. What accounts for the huge difference in local tence and level of an underground economy important rates between 1995 and 2005 (hint euros versus lira)? for managers? 10. The staff economist of a large multinational with a 6. What is purchasing power parity, and why should Turkish subsidiary has given to the firm's chief finan- managers of international companies be concerned cial officer a report on Turkey's foreign debt situation, about it? as shown in Table 7.7. What concerns might the chief financial officer have? 7. Why is income distribution important to marketers in international companies? 239 Economic and Socioeconomic Forces Chapter 7