) A European apparel manufacturer has production facilities in Italy and China to serve its European market, where annual demand is for 1.5 million units. Each facility has a capacity of 1 million units per year. With the current exchange rates, the production and distribution cost from Italy is 10 euro per unit, whereas the production and distribution cost from China is 7 euro. Over each of the next two years, exchange rates are expected to stay the same, but the demand could rise by 10 percent with a probability of 0.2 or drop by 5 percent with a probability of 0.8. An option being considered is to shut down 0.2 million units of capacity in Italy and move it to China at a one-time cost of 1 million euro. Assume no discount factor. What is the saving or loss by moving the capacity to China

Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought the stock in the target corporation. the takeover occurred and the friend made a substantial profit from buying and selling the stock. the friend told sharon about his stock dealings, and gave her a pearl necklace because she "made it all possible." the necklace was worth $10,000, but she already owned more jewelry than she desired.

Consider the market for gasoline. suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon, and employees at gas stations earn $17.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect the government has instituted a legal minimum price of $3.40 per gallon for gasoline. the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $14.50 per hour.

The prebisch–singer hypothesis concludes that: a. technology lowers the cost of manufactured products, so developing countries should see an increase in their terms of trade. b. developing countries experience a long-run decline in their terms of trade, as the demand for primary products in higher-income countries declines relative to their demand for manufactured goods. c. because of unfair trading practices, labor in developing countries is exploited. d. opec has been responsible for a slowdown in the world's standard of living.