see the question below

CT 4 

Option #1: Analyzing Inventory Turnover

Research the term “inventory turnover” and write a paper discussing the normal inventory turnover for the following industries:

1.        Automobile manufacturers

2.        Restaurants and hotels

3.        Retailers

In your report, discuss the following:

• What is the purpose of holding inventory?
• Which steps do you think companies can take to improve the accuracy of their inventory management program?

Your well-written paper should meet the following requirements:

• Be 2-3 pages in length, not including the cover and reference pages.
• Be formatted according to the CSU-Global Guide to Writing and APA.
• Cite a minimum of 3-5 sources to support your responses, two of which are academic, peer-reviewed sources. These sources  should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course, and provide new thoughts and insights relating directly to this topic. The CSU-Global library is a great place to find these resources. Your response should reflect scholarly writing and the current CSU-Global APA writing standards.

Refer to the Critical Thinking Assignment rubric available in the Module 4 folder for more information on assignment expectations and grading.

****must be double spaced, times new roman 12-point font, double spaced, paragraphs indented, must have section headers, title page, references page and three in text citations and 3 scholarly references Suppose that the marginal product of labor (MPL) for China and Thailand are the following

                                         Cell Phones                 chargers
China                                      30                               40

Thailand                                 30                               50

a)        Which country has absolute advantage in cell phones?

Both countries, Thailand and China have absolute advantage as they produce similar units of cell phones.

b)       Which country has comparative advantage in cell phones?

Comparative advantage is the cost of production. In this case, the comparative advantage will be the country that has the ability to produce the cell phones at a lower cost in which case we are not told the costs of production.

c)        Suppose China has 100 units of labor. Draw the production possibility frontier for China.

d)       What is the possible range of prices (cell phones to chargers), when trade is opened

The cost of the cell phones to charger will be calculated by analyzing the amount of each item being willing to give up

If 40 chargers are produced in a given time, then 0 cell phones are produced. Therefore the price 1is 2

e)        Now consider the effects of trade. Add a world trade price line to your diagram in c), and illustrate a plausible consumption point for the China.

L = the labor endowment in the China (the total number of hours employees are willing to provide), 100

aLC = unit labor requirement in cell phone production in China (hours of labor necessary to produce one unit of cell phones)

30 x 100= 3000

aLW = unit labor requirement in wine production in China (hours of labor necessary to produce one unit of chargers)

40 x 100

4000

f) Does China import or export chargers?

China exports chargers

g) Based on Chinese consumption during trade, label a amount of Chinese exports and imports on your diagram. 

2. Ricardian Trade

When Mexico and Argentina trade the world price of bicycles to computers is 3. Suppose further that the marginal product of labor for Mexico and Argentina are the following:

                                                  Bicycles                     Computers
Mexico                                            4                                   8

Argentina                                        2                                   7

1.        d)  Which country exports bicycles?

Argentina

2.        e)  What is Mexico’s wage in terms of bicycles and in terms of computers?

aLC= 4 x 3

12 for Mexico’s wage in terms of bicycle

Compters; aLC= 8 x 3

24 wage

3.        f)  What is Argentina’s wage in terms of bicycles and in terms of computers?

Bicycles

2 x 3=6

Computers

7 x 3=21

4.        g)  What is the relative wage of Mexico relative to Argentina?

The relative wage of Mexico to Argentina will be calculate the total wage of Mexico and Argentina

Mexico= 12+24

36

Argentina= 21+6

27

The relative= 36:27

9:7

= 1.3

5.        3. Specific Factors Model of Trade

6.        Businesses in Finland have made investments that have created stocks of capital that are devoted to either telecommunications (T) or business services (B).

7.        a) Suppose that Finland is not trading. Draw the specific factors diagram for Finland, indicating how labor is divided between the two industries, and showing the prevailing wage wo.

8.        b) Suppose before trade that the relative price of telecommunications to business services is 4 in Finland while the relative price for the rest of the world is 6. What do you predict about the world price of telecommunications to business services once trade starts?

9.        c) Modify your diagram to show how Finland's labor allocation and wage change when it opens trade with the rest of the world.

10.     d) How does the opening of trade affect capital owners in Finland's business services industry? Describe and show on your graph.

11.     e) Can you predict whether Finnish workers are likely to benefit or lose from the opening of trade? Explain.

12.     f) Suppose Finnish workers consume as much telecommunications as they can, while they buy very few business services. How does this affect the likely magnitude of worker gains or loses?