Why might it be relatively easier for an undeveloped country like India to export service activities through

Question:

Why might it be relatively easier for an undeveloped country like India to export service activities through offshoring than to participate in the global economy by producing manufacturing components?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Economics

ISBN: 978-1429278447

3rd edition

Authors: Robert C. Feenstra, Alan M. Taylor

See More Books

Question Posted: Feb 04, 2016 05:30 AM

See More Questions

Why might it be easier for an investor desiring to diversify his portfolio internationally to buy depository receipts rather than the actual shares of the company?
Why might it be useful to estimate the beta for a stock from returns on stocks within its industry rather than from the stock itself?
Why might it be true that relative PPP holds better in the long run than the short run? (Think about how international trading firms might react to large and persistent cross border differences in...
Problem 10 The Solow Growth Model is an exogenous model of economic growth that analyzes changes in the level of output in an economy over time as a result of changes in the population growth rate,...
As a junior analyst, you are evaluating the financial performance of Digilog Corporation. Impressed by this years growth in sales (20% increase), receivables (40% increase), and inventories (50%...
Monsta Cola hires us to help assign and report costs. The company has two departments: mixing and bottling. To aid our analysis, the following Tableau Dashboard is provided with information for the...
With reference to Exercise 4.5, find an expression for the distribution function $F(x)$ of the random variable. Data From Exercise 4.5 k 4.5 Given that f(x): = is a probability distribution for 2x...
A research hypothesis is that the variance of stopping distances of automobiles on wet pavement is substantially greater than the variance of stopping distances of automobiles on dry pavement. In the...
(13%) Problem 4: A student standing on a cliff throws a stone from a vertical height of d = 8.0 m above the level ground with velocity vo = 18 m/s at an angle 0 = 32 below the horizontal, as shown....
Companies U and L are identical in every respect except that U is unlevered while L has $10 million of 5% bonds outstanding. Assume that (1) all of the MM assumption are met, (2) both firms arc...
Consider an offshoring model in which the labor hours of four activities in the United States and Mexico are as follows: Labor hours in Mexico are four times those in the United States, reflecting...
It is widely noted that even though China is the favored destination for manufacturing offshoring, it is far behind India in the business of offshored services. What are some differences between...
Differentiate between economies of scale and scope and describe how both produce cost advantages.
Which of the following one-year, $1000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6.1%, compounded monthly b. A loan with an APR of 6.1%, compounded annually, with a...
It is May 16, 2019, and you have decided to purchase 10 June call contracts on Amazons stock with an exercise price of $1905. Because you are buying, you must pay the ask price. How much money will...
Suppose the stock of Host Hotels & Resorts is currently trading for $21 per share. a. If Host issues a 23% stock dividend, what would its new share price be? b. If Host does a 3:2 stock split, what...
The Rasputin Brewery is considering using a public warehouse loan as part of its short-term financing. The firm will require a loan of $550,000. Interest on the loan will be 9.6% (APR, annual...
FCF Co. has 16,000 shares outstanding and a total market value of $1 million, $350 thousand of which is debt and the other $650 thousand is equity. It is planning a 10% stock dividend. a. What is the...
Use the gradient to find the directional derivative of the function at P in the direction of Q. g(x, y) = x + y + 1, P(1, 2), Q(2, 3)
The trade-off theory relies on the threat of financial distress. But why should a public corporation ever have to land in financial distress? According to the theory, the firm should operate at the...
Suppose that two countries, Brazil and Mexico, produce bananas. Brazil uses the real; Mexico uses the peso. In Mexico, bananas sell for 10 pesos per pound of bananas. The exchange rate is 0.5 real...
Consider a Dutch investor with 1,000 euros to place in a bank deposit in either the Netherlands or Great Britain. The (one-year) interest rate on bank deposits is 1% in Britain and 5% in the...
In June 2006, a Korean investor is considering investing in bank deposits in Korea and Japan. The annual interest rate on Korean deposits is 6.25%, versus 3.75% on deposits in Japan. Suppose that the...
The following information is available for ADT Company, which produces special-order security produc order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct...
Stahelin Valves produces a single component, a valve. The valve sells for $43 per unit. Fixed costs are $1,605,000 annually. Production and sales of 407,000 units annually results in profit before...
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $29,000 (original cost of $78,500 less accumulated depreciation of $49,500) and...

Why might it be relatively easier for an undeveloped country like India to export service activities through

Question:

Step by Step Answer:

Because offshoring of manufactures involves the trade of interm...View the full answer

International Economics

Students also viewed these Economics questions