A U. S. manufacturing company operating a subsidiary in an LDC ( less- developed country) shows the
Question:
A U. S. manufacturing company operating a subsidiary in an LDC ( less- developed country) shows the following results:
a. Calculate partial labor and capital productivity figures for the parent and subsidiary. Do the results seem confusing?
b. Compute the multifactor productivity figures for labor and capital together. Do the results make more sense?
c. Calculate raw material productivity figures (units/$ where $1 = FC 10). Explain why these figures might be greater in thesubsidiary.
Transcribed Image Text:
US LDC Sales (units) Labor (hours) Raw materials (currency) Capital equipment (hours) 100,000 20,000 $20,000 60,000 20,000 15,000 FC 20,000 5,000
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a Labor Productivity Country Output in Units Input in Hours Productivity OutputInput US 100000 20000 ...View the full answer
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Related Book For
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase
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