Analyze existing and potential comparative advantages and international trade opportunities.
Purpose of Assignment
Students will develop cost curves on which firm behavior is based and will utilize these cost curves to determine the behavior of their chosen organization in the market served. Using the concept of comparative advantage, students analyze international trade opportunities and use the model of supply and demand to explain factors that could affect demand, supply and prices. Students will determine various factors that could affect their organization’s total revenue and will recommend actions the firm could use to maximize their profit and their presence in the market served.
Assignment Steps
Scenario: Your learning team has been given the responsibility of working with your workplace’s CEO to do a competitive market analysis of the potential success of one of their existing products in foreign markets/international trade.
Research a private-sector, for-profit firm that is not a Fortune 500 firm and a product produced by that firm in which an analysis can be conducted.
Write a 1,750-word analysis of the current market conditions related to your chosen firm’s product. Use the bolded words/phrases shown below as first-level headings for your paper. Your paper should:
Include an introduction and a conclusion. See Thesis Statements, Introductions, and Conclusions which is posted as a Class Message and includes information on writing thesis statements, introductions, and conclusions. Your introduction should include a clear and concise statement of the main problem/issue to be addressed.
Define the market structure in which your selected product will compete and include an analysis of competitors and customers.
Analyze existing and potential comparative advantages and international trade opportunities.
Supply and Demand Analysis: Discuss any shifts in supply and demand that have occurred for the product/service over the last five to ten years and whether these shifts increased or decreased prices and quantity. Discuss each of the shift factors of supply and demand listed in Chapter 4 of our course textbook. If a shift factor has not changed, simply state that it has not changed.
Price Elasticity of Demand: Analyze: (1) whether the product or service is price elastic or inelastic based on an analysis of the four factors that affect elasticity, (2) the effects of raising the price of the product or service on quantity demanded and total revenue, and (3) the effects of lowering the price of the product or service on quantity demanded and total revenue. For example, the time consumers and producers have to adjust to a change in supply and/or demand is one of four factors that affect elasticity and should be included in this discussion.
Technology, Productivity, and Cost Structure: Analyze the trends in costs within the firm and/or the firm’s industry. Be sure you include a discussion of wages and benefits, fixed and variable costs, and the law of diminishing marginal productivity.
Conclusion: Review all the elements of this assignment. Recommend how your chosen firm can maximize their profit-making potential and increase their presence within the market served by the product. Consider the effect your recommendations may have on marginal revenues and costs.
Format your paper consistent with APA guidelines. Cite at least three peer-reviewed resources in your paper; the course text is an acceptable resource for this assignment
Solution preview
Apple Inc.’s primary objective in producing iPhones is to maximize on their revenues. However, the profits Apple makes are reduced by certain costs which are incurred during the production of iPhones. Therefore, Apple’s determination of how many iPhones to produce is dependent on the relationship between the costs and profits…………………………
APA
419 words