Select and research two countries that you feel are culturally diverse. After comparing the two countries, discuss and identify how the cultural differences influence:
the costs of doing business in each country
the future economic development for each country
the business practices used in each country
Problem 1 (10 points, 1-2 paragraphs):
Why do you think Duflo and Pande’s (2007) estimate of the distributional impacts of dams in
India differs so much from Bao’s (2012) estimate of dams in China? Offer and defend a feasible
hypothesis (or hypotheses) using the language of public economics and social choice.
Problem 2 (10 points, 1-2 paragraphs):
Referring to both Weitzman (2016) and Barett (1999, in “UNDP – Global Public Goods”)
outline the major differences between the outcomes of the Montreal and Kyoto Protocols, and
explain why they are or are not surprising given what you know about cost benefit analysis and
the basic science of ozone depletion and climate change.
Problem 3 (30 points):
Choose one of the following goods and answer the following questions. You may, of course,
refer to outside sources / the internet in your answer and to review your topic.:
The invention of an effective malaria vaccine
The global coral reef ecosystem
a. How rival is this good? How excludable is it?
b. What kind of phenomenon in public economics best captures the economic structure of
this problem? Explain briefly why you think so and if there are multiple competing
answers (e.g., it’s a positive externality but also a club good, etc.)
c. Is this good under or over provided? Explain why using concepts from public economics.
d. Outline two feasible policies for providing the correct level of the good, explain any
potential barriers to implementation for each, and explain which policy you think would
be most successful.
e. Is this policy currently being put into practice? If so, how do you predict the problem to
evolve over time? If not, why not, and what do you think will happen in the future?
Problem 4 (25 points)
In rural Kenya the main livelihood of many pastoral communities is raising dairy cattle. Suppose
that the cost of a dairy cow is 5000 Kenyan shillings. Cows produce milk, which we will
normalize in price to 1. Let us denote the number of herdsmen in a given area of savanna by N,
and indicate the number of cattle that farmer i elects to field in the savanna by xi, letting
X = Σi xi
be the total number of cows. As more cattle graze on the savanna the total amount of available
grass decreases, impacting milk production, such that over the course of a year each cow
produces 50,000 – 200X units of milk.
a) What is the production-maximizing number of cows per herdsman when there is only one
b) What is the production-maximizing number of cows per herdsman when there are N
herdsmen and they cooperate fully? Assume herdsmen act identically.
c) If each herdsman acts independently of his peers how many cows will he decide to field?
Assume all herdsmen act identically.
d) Express the difference between an individual herdsman’s total profit in (b) and in (c). As
the number of herdsmen grows large, what happens to this value?
e) Consider a scenario where herdsmen in scenario (c) are considering two policies, one
limiting the total number of cows that are allowed to graze on their patch of savanna and
one limiting the total number of herdsmen. Which do you think would work better, and
Problem 5 (25 points)
Suppose now that our Kenyan pastoralists must decide how much to spend on restoring the
savanna so as to provide fodder for cows, and decide to do so by holding a village-wide meeting
to discuss the issue and vote. Suppose that the village can spend X million shillings on
restoration, where X ∈ [0, 10]. Suppose further that we can characterize the population of the
Kenyan savanna as consisting solely of three types of households (A, B, and C), with N
households of each type. Household utility as a function of X for each type of household are as
A : UA(X) = 3X − X2
B : UB(X) = 5X − X2
C : UC(X) = 9X − X2.
a) Before the village votes, the village elders select nominations for the amount of savanna
restoration to pursue. Which values of X will each type of household nominate? Label
these XA*, XB*, and XC*.
b) At the town meeting, the elders lead the town through pair-wise voting, i.e., they vote on
XA* versus XB*, then the winner of that round versus XC*, and then vet the winner of
that round versus the loser of the first election, etc. Assume everyone votes for their
preferred choice. Write out the outcome of each election. Does the village easily settle on
a consistent winner this way? If so, which option do they choose, and which type of
pastoralist is happiest?
c) Now suppose that the town is composed of different households of types D, E, and F, and
that the elders decide on nominations themselves. The selectmen choose three possible
outcomes: X = 3, X = 6, or X = 8. Moreover, the three types of households (again with N
households of each type), have preference rankings such that
Ds: prefer X = 8 to X = 6, and X = 6 to X = 3
Es: prefer X = 3 to X = 8, and X = 8 to X = 6
Fs: prefer X = 6 to X = 3, and X = 3 to X = 8
Assuming the same pair-wise voting scheme as before, what is the outcome of the
election? Why is this case different from the scenario in part (b)?
d) Imagine that to solve scenario © one elder is chosen at random to be the “agenda setter.”
This elder chooses the order of pair-wise voting, with the winner of the first pair-wise
vote put up against the third option, and the winner of this second pairwise vote
implemented. Demonstrate that the “agenda setter” can determine the final provision
level that they personally want most, assuming that all households vote sincerely.
e) Imagine that there are many villages following this voting mechanism to decide on local
savanna restoration. If our Kenyan pastoralists are largely mobile and can easily move
from town to town, why might the outcome in part d) not be of concern?
Toyota is a Japan based organization which was set up in 1937 by Sakichi Toyoda and is the world greatest car makers, Toyota has accomplished a record offer of 9 million autos in five landmasses. Toyota is additionally positioned in the main ten 500â² organizations. Toyota is one the world's most prestigious automobile makers and they are glad for this achievement and they trust it is simply because that their clients are fulfilled by them. http://www.toyota.com.cy/encounter/the_company/index.aspx System of Toyota Diverse methodologies of Toyota are clarified as under Development Strategy Keeping in mind the end goal to accomplish a remarkable development technique, organization must discover, assess and select a procedure to enter and to catch a market. Toyota entered in American market in 1967 alongside a scope of autos and after that Toyota propelled different brands, for example, lexus and scion. Toyota turned into a fruitful auto maker organization for the most part in light of a viable and assorted promoting process which has empowered them to pull in clients and extend its item range to other market portions. One of the other primary motivation behind why Toyota figured out how to do in America is a direct result of 1973 oil emergency. At the point when Toyota entered in American market it was not viewed as a danger in light of the fact that everybody use to state that Toyota autos don't bid American individuals. In any case, because of the oil emergency individuals understood that Toyota autos are profoundly eco-friendly and significantly more solid. Showcasing Strategy of Toyota Toyota is a worldwide brand and the monetary emergency which began in 2009 has hit Toyota. Thusly, Toyota is currently advertising and making eco-friendly autos, for example, the new Auris mixture and others. Over that Toyota is vigorously promoting there 1 liter autos, for example, Toyota iq and aygo and this occurred because of the monetary crunch that presently individuals don't have much spending force. http://ayushveda.com/sites/business/toyotas-promoting system/ Ecological system In present day period, all the created and immature nations are more worry with nature and are attempting their best to advance autos which are greater condition well disposed and toss less co2 emanation out. As a worldwide auto maker Toyota is assuming its job in limiting the co2 impact on nature of the world. This is the reason Toyota has propelled half and half autos, a definitive eco auto, electric vehicles, connect to cross breed, power module vehicle autos which expend less fuel and furthermore release less co2 discharge. So fundamentally, Toyota is making autos which are easy to understand and furthermore condition friendly.www.toyota.com To basically assess the technique of Toyota, some examination of inward and outside investigation required to be done and they are clarified as under. SWOT examination This investigation is an awesome instrument for completing a review of an association and its condition. It is the initial step for advertisers to take to center around key issues. Swot remains for qualities, shortcomings, openings and dangers. Qualities and shortcomings look at the inside components of an organization while the chances and dangers are the examination of outer variables. SWOT investigation of Toyota Qualities of Toyota Toyota is worldwide association, which appreciates awesome notoriety among its clients and has an extremely solid universal position in 170 nations. Budgetary side of this organization is to a great degree solid in 1997 organization dealt with a business turnover of £131,511 million and development of the organization was 29.3%. Because of its high caliber, a domain well disposed item Toyota has an extremely solid brand acknowledgment. Toyota has overseen effectively infiltrate into the principle markets of the world which incorporates USA, China and Middle east nations. http://wiki.answers.com/Q/What_is_the_swot_analysis_of_Toyota Shortcoming of Toyota The creation plants of Toyota are situated in US and Japan because of which they are not in an exceptionally great position to exploit from worldwide effectiveness gains. The organization has endured a great deal of feedback because of the re-call made in 2005 and 2010. http://wiki.answers.com/Q/What_is_the_swot_analysis_of_Toyota Open doors for Toyota Toyota was the primary organization to build up a half and half auto (crossover vehicle keeps running on gas and electric) which was the Prius show. Around then oil costs were at their extraordinary so around then Toyota has offered something to the market. Toyota is anticipating grow contentiously into new sections of existing markets for instance by the dispatch of Toyota Aygo the organization is focusing on the adolescent of the world. Another open door for Toyota is to create little city autos which will be more eco-friendly and furthermore simple to drive in addition to will deliver less c02 emanation since now daily administrations of all immature and created nations are indicating incredible worry about nature. Toyota appreciates great piece of the pie in Europe, UK and America the organization should target creating nations, for example, Pakistan, India and Srilanka where request is high for extraordinary eco-friendly autos. http://wiki.answers.com/Q/What_is_the_swot_analysis_of_Toyota Dangers to Toyota Toyota faces high rivalry by Honda and by other German auto producers. Particularly in the present worldwide market the pattern of serious advertising effort is expanding which will just build weight on Toyota. The situation of US dollar is exceptionally steady so the trade rates are assuming a noteworthy job in the benefit and loss of the organization. The retreat that has hit the world just about a few years prior have caused significant issues for Toyota since auto deals have declined quickly as far back as the subsidence began. Market drift is changing for instance the pattern of expansive families reaching an end and with it the need of extensive autos. Reliable increment in fuel costs has likewise purchased a huge decay the auto offers of Toyota Company. http://wiki.answers.com/Q/What_is_the_swot_analysis_of_Toyota BCG Matrix The Boston consultancy gather framework is a talk which was made by Peter Henderson in 1970. The motivation behind this outline is to assist organizations with the assembling units and product offerings. The base of this device in the item life cycle hypothesis and it encourages organizations to settle on which zones they ought to organize. BCG Matrix for Toyota Prius This device can likewise be utilized to investigate the dispatch of an item in the market. In this lattice two variables decide the achievement of an item. Piece of the pie and market development are clarified independently in the graph. With the assistance of this device an exceptional advertising methodology can without much of a stretch be resolved. Market Growth of Prius The Toyota prius was propelled in Japan in 1997 and it was made accessible to the world in 2001. Before the finish of 2003, another model of the auto was propelled and because of its cutting edge cross breed innovation it was sold 160,000 times all through the world. It was for the most part on the grounds that around then the prius was the main cross breed auto and Toyota made greatest benefit out of that. Up till now Toyota has figured out how to offer around 1 million cross breed autos and the vast majority of them are prius. To investigate the market development of this item, given underneath is the month to month deals figure of U.S from 2000 to 2007. From the table above, we can plainly observe that prius deals have expanded drastically over thye years. In 2000 number of autos sold was only 5,562 though the autos sold in 2007 barring the period of December were 167,010 which is right around 30 times increasingly the quantity of autos sold in 2000. The table given above, we can obviously see that Toyota prius was the top rated auto in US with an incredible edge. Toyota has only 5.3% a greater number of offers than September 2007 however it has by and large 50.7% more deals then the most recent year October. We can likewise observe an exceptional development in the market of cross breed autos which is just about 30% which implies that it is a quickly developing business sector. Piece of the pie of Toyota Prius On the off chance that we take a gander at the piece of the overall industry of Prius, it goes ahead best of the mixture auto piece of the pie. The prius has a huge 53.7% piece of the overall industry and this is on account of Toyota has sold three times a greater number of autos than the sprinter up. This is the motivation behind why prius was the market pioneer in 2007. The prius has sold around 190,000 autos which comes up to a piece of the overall industry of 57% and this is a reasonable confirmation that prius is a market pioneer even on yearly premise. End After this nitty gritty bcg investigation it is presumed that prius is a star item. It has a blasting piece of the overall industry in the popularity market of half breed autos. This makes prius a star item and an item which has a ton of potential later on years. In the BCG lattice outline the prius have its situation in the upper left since it has a remarkable piece of the pie in a dynamic and quickly developing business sector. Along these lines, prius is a star item. This data can be utilized by Toyota to set up an arrangement for business and along these lines the venture the organization make in the item can likewise transform into a money dairy animals. Watchman's five powers investigation This is the best apparatus in dissecting the procedure of an industry. As per wiki " this is a structure for the business examination and business procedure advancement created by Michael E Porter of Harvard business college in 1979.it utilizations ideas creating modern associations financial aspects to infer five powers that decide the focused force and in this manner engaging quality of a market. http://www.themarketers.in/?p=446 Doorman's five powers examination incorporates basic investigation of five perspectives which are as per the following Danger of new contestants. Bartering intensity of clients/purchasers. Danger of substitute items. Bartering intensity of providers. The measure of contention between contenders. Five powers examination on Toyota Itemized examination of doorman's five powers. Risk of new participants In vehicle industry all the enormous organizations confront risk of new participants who go into market to have their spot. Toyota likewise faces same issues and the ongoing dispatch of TATA nano is a major danger for Toyota and f>GET ANSWER