Consider an offshoring model in which home’s high-skilled labor has a higher relative wage than foreign’s high-skilled labor and in which the costs of capital and trade are uniform across production activities.
(a) will home’s offshored production activities be high or low on the value chain for a given product? that is, will home offshore (i. e., outsource) activities that are high-skilledlabor-intensive or low-skilled-labor-intensive? depict the slicing of the value chain for the home country and briefly explain in words.
(b) suppose that home uniformly increases its tariff level, effectively increasing the cost of importing all goods and services from abroad. how does this affect the slicing of the value chain? answer by depicting the original slicing of the value chain as "a" and the new slice as "b".
(c) draw relative labor supply and demand diagrams for home and foreign showing the effect of this change. what happens to the relative wage in each country?

142"what is the value of n? soefon11402bebe99918+19: 00esseeshop60-990 0esle

Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u.s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51