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a. Write an opinion piece on the debate around free trade, trade liberalization and globalization. b. What positions do various authors hold in this debate? c. Do they look at the issues from the same perspective? d. What are some of the key arguments raised in the debate? e. What is your position?

In the 21st century, there is no doubt that the world is interconnected thanks to the new era of globalization. Many countries trade goods and services for their own benefit. Vast capital flows can transfer anywhere around the world. A connection exists between globalization, free trade, and trade liberalization. Global...

a. Construct a scatter-plot graph showing the price of motor vehicles on the vertical axis and the number of motor vehicles sold on the horizontal axis. Comment on the relationship between sales and price. b. Use regression analysis to estimate the motor vehicle demand function of the following form: Motor vehicle sales = β0 + β1(Price of Motor Vehicles) + β2(Price of Fuel) + β3(Income) where the β’s represents the estimated regression coefficient. c. Discuss briefly what information the estimated regression coefficients (the β’s) provide regarding the determinants of motor vehicle sales.

b. Variables Entered/Removed Model   Variables Entered Variables Removed Method   1   MOSALES . Enter   a All requested variables were entered.b Dependent Variable: PRICE ANOVA Model   Sum of Squares df Mean Square F Sig.   1 Regression 1673.249 1 1673.249 72.072 .000     Residual 1253.690 54...

Briefly comment on the likely effect that the rise in the price of oil may have on: a. the incentives for future oil exploration; b. the development of alternative energy sources; c. manufacturers of motor vehicles plans for future design of cars.

The incentives for future oil exploration As prices go up, life becomes very expensive, thus slowing down development. Being a natural resource, many countries will tend to explore this resource in their country. The development of alternative energy sources The rising oil price prompts governments across the world, from EU...

With the aid of fully-labelled diagrams, illustrate the effects of rising oil prices on producers operating in a competitive industry who use oil as their principal source of energy. Consider both the response of the firm and the impact on the industry in: a. the short run, and b. the long run.

The cost of manufacturing goes up because of most of the increase in oil prices. This will increase the price of the good, thus reducing demand. This may be regarded as a temporary setback for suppliers’ shifts to conduct their operation in a manner that they make a loss, and...

With the aid of diagrams, analyse the effects of rising oil prices on the demand for inner city housing and the demand for housing in outer suburbs. How would your answer differ if the government announces that it will improve public transport and road infrastructure links between inner and outer city suburbs?

As oil prices increase, the demand for inner-city housing increases. This is due to a change in fares to out city. When the oil price is increased in inflation economies, there will be an increase in the cost of the fare. This will reduce the quantity demanded in out city...

With the aid of diagrams, illustrate the effects of rising oil prices on: a. demand for kilometers traveled (total demand for transport); b. motor vehicle usage; and c. the demand for 4 cylinder versus 6 cylinder motor vehicles.

Effect of oil prices on demand for kilometers traveled The rising of oil prices prompts governments across the world, from EU countries to the United States, to increase or decrease interest rates so as to control their economies. Because of a continuous rise in the prices of petroleum products, the...

Explain why a high rate of inflation is bad for the economy.

The term ‘inflation’ is used when explaining the economic process of rising prices. An economic situation is considered to be inflationary when either the prices or the supply of money are rising and in practice, both will rise together. Typically, countries through their central bank’s carry out fiscal, monetary, or...

What is meant by the phrase “growth strategy”? What alternative growth strategies are available to a company? What are the relative advantages and disadvantages of each strategy? Why do so many mergers fail to deliver the benefits that the senior management of an organization expect when they enter into merger negotiations? What actions could senior managers pursue in order to improve the probability of a merger being successful?

‘Growth Strategy’ refers to a strategic plan formulated and implemented for expanding a firm’s business. There are many types of growth strategies, and each strategy has its own advantages and disadvantages. A firm can adopt different strategies at different points in time. Every firm has to develop its own growth...

Explain why the payback method cannot be recommended as the main method used by a company to assess potential investment projects.

The payback method has been criticized by financial experts and academicians as unsophisticated and theoretically incorrect because it ignores the time value of money, ignores cash flows beyond the payback period, and is inconsistent with the owner’s goal of maximizing wealth. In small and large firms, where the payback method...

Explain the internal rate of return term and illustrate your answer.

The internal rate of return (IRR) or yield can be defined as the discount rate, which equates the present value of the expected initial cash investment with the present value of the expected cash inflows. In other words, the IRR is the discount rate that, when applied to an investment’s...

Explain the net present value term and illustrate your answer.

The cash flow profile of business investment decisions typically involves the outlay of a substantial cash sum now (time zero) followed by a series of cash inflows occurring over some defined future period. The problem is that the initial outlay is being spent now in the present time, whereas the...

Explain the discount cash flow term and illustrate your answer.

The discounted cash flow method overcomes the central weakness of the payback and ARR methods by focusing on cash flows and adjusting them to reflect the time value of money. To evaluate investment alternatives effectively, the cash outflows and inflows relevant to each proposal must be determined. As cash is...

Explain the accounting rate of return term and illustrate your answer.

The accounting rate of return (ARR) appraisal method is also known as the return on investment (ROI) or return on assets (ROA) method. It is calculated by dividing a project’s average accounting profits by its average investment. The average profits figure is found by adding up the profits for each...

Explain the payback method term and illustrate your answer.

The payback method is a very popular investment appraisal technique. It is essentially an expression of the time taken to recover the initial cash outlay on investment from the investment’s cash flow returns. Generally, firms tend to set a fixed maximum payback period (PBP) for projects and use it for...

Why is communication with customers so important to IBM?

The importance of communication to the customers as portrayed by Steve are: Through IBM Global services IBM uses communication to get long-term contracts with its customers. Through communication, IBM is able to find out the customer’s needs for their businesses. It uses communication in letting the customers know what IBM...

Describe the production and core features of Jones Corporation.

Jones Corporation has emulated the phenomenon of converting its business portfolio from a local perspective view to an international status. Through implementation of the extensive marketing strategies, and expansive geographical market segmentation in Europe, Middle East and Africa; North America; and Asia-Pacific, Jones Corporation company has been able to improve...

What Is Understood by the Terms “Deepening” and “Widening” in the Context of the European Union? What Were the Three Main Stages of Deepening That Occurred in the European Union After the Passage of the Treaty of Rome?

“Deepening” in the terms of the EU means that the countries members of the Union have to strengthen their inter-relations on an economic and political basis. This means that they should move toward a unified economic policy and function as a sole market. In political terms, it refers to the...

How did relocation of production to Hungary influence Coloplast’s organization?

The Hungarian plant employed a staggering 900 people, which made up 15% of the organization’s entire workforce. Given the low costs of operation and the favorable tax rate, the plant would realize yearly savings of DKK75 million before tax. The plant outperformed its Danish counterparts in quality levels, revenue increased...

Discuss the issues related to the transfer of knowledge between the Denmark and Hungary offices?

There were several issues related to the transfer of knowledge between Denmark and the Hungary office. The addition of Hungary in the company’s network further augmented problems if the decentralized structure at Coloplast. The organizational structure at Coloplast was built upon a decentralized system with each separate unit working autonomously...

Compare the pros and cons of off-shoring vs. outsourcing?

Outsourcing and off-shoring have two separate functions each with its own advantages and disadvantages. Outsourcing, that is subcontracting to a third party is considered to be far less costly, it minimizes capital expenditure as that is handled by the third party itself. Specialized skills in terms of customer services, technical...

What is a constituency? How does it affect the HR department?

Traditionally, the word constituency is interpreted as a group of people, who share common goals, identity, moral values, ethical principles, and so forth. However, if we are speaking about management, we should say that this concept acquires a different meaning; it denotes a group of people, on whom the company...

Explain the link between compensation and recruitment and selection.

Such concepts as compensation, recruitment, and selection are closely intertwined with one another. This interdependence can be illustrated in the following way; if the level of compensation is relatively high, it is very likely that there will be a great number of candidates for the position. From a mathematical point...

Explain the job characteristics theory. How does it tie in with intrinsic compensation?

On the whole, job characteristics theory is a method, employed to describe and evaluate the functions which an employee performs in the organization or company. This approach relies on such criteria as the variety of skills, required for the given position, task identity or task significance, the degree of autonomy,...

What could your team improve?

Our team was able to improve our efforts if we had designated a Team Leader and worked out how we were going to resolve issues concerning our approach and we managed to find consensus on the methodology of collecting data. We also could have kept better notes of the decisions...

What did your team do well?

We suppose that our team was very collaborative in our approach to the team project. Everyone was open to the suggestions of each other, and we listened to each other’s thoughts, and the decisions, which were made, were not the decisions of a single person. Every suggestion was taken into...

Today, governments around the world are cutting interests rates and increasing the supply of money to the economy in order to try to counter the fall in economic activity and well being in the 1930s during the Great Depression governments did little and hoped that markets would take care of themselves. Which do you think is the right approach to solving such crises and why?

Economic recession is a serious challenges faced by all of the world economy players. The major causes that leads to recession was falling prices in the property market, rising unemployment, increasing bankruptcy situations among the individuals as well as corporate organizations, down ward trend in the stock prices and decreasing...

What do you think caused the present economic recession?

In 2008–2009 most of the industries in the world have entered into a deep recession as a result of the financial crisis that had its origins in impulsive lending practices and distribution of mortgage debt in the United States. Sub-prime loans losses in 2007 exposed other risky loans and over-inflated...

How does Levi Strauss take advantage of the global environment?

Levi Strauss is indeed a well known brand in jeans throughout the world for many years now. But with the spread of globalization the level of competition has indeed goes up. Liberalization in economies around the world has opened up newer vistas of trade. Levi Strauss has been catering the...

What is your opinion on the “three benefits” for eBay’s acquisition of Skype? To what extent do you agree or disagree with these “three benefits”? To what extent do they justify the price paid by eBay?

The three benefits have been highlighted in the case as reducing ecommerce friction, incorporating a pay per call model and options available to eBay for cross marketing. The mentioned benefits are derived form the nature of Skype, its operations and the technology used by the company. By acquisition of Skype...

Can you think of a successfully run e-business with a brick-and-mortar store? What has this company done to stay ahead of the competition?

I could think of Amazon.com as a successfully run ecommerce business with the traditional brick and mortar store in place. Amazon.com has become one of the most successful internet enabled book stores due to its innovative marketing and excellent customer servicing. Established just in the year 1995, today it could...

What are the positive and negative impacts of international trade on the United Kingdom?

During the past, in the U.K, the revenues from slavery and the slave trade filtered back into the Great Britain economy in indirect ways, the insurance companies, bankers, and financial institutions all participating as active traders for investment. The British manufacturing industry, according to historians, received the extra spur of...

Is team management related to the project life cycle? Explain why, or why not?

The underlying assumption of a project management is that the composition of a project management (PM) team must reflect the needs of the project (Eskerod & Blichfeldt, 2005). Such needs typically change over the course of the project’s life cycle. Moreover, project members may enter or withdraw from projects due...

Describe four potential causes for failed projects. What two project management skills in each case would overcome the potential failure? How do you come to this conclusion?

The percentage of information system (IS) failure is very high. Almost 25 percent of the projects undertaken fails (Keil, Mann, & Rai, 2000). A project is said to have failed when the project budget overruns by 30 percent or more, the project schedule is overrun by 30 percent or more,...

What ethical issue(s) are raised by RugMark’s inspection and audit process?

The carpet producers that are in registration with the RugMark commit to them that they would not use child labor (children under 15), they allow their looms to be inspected unexpectedly and their carpets are sold bearing the RugMark label and the entire promotion is carried out by the RugMark...

Who are the core stakeholders in a village carpet factory supplying RugMark?

India and Nepal are the core stakeholders in a village carpet factory supplying RugMark. It was founded in 1994 by the humanitarian organizations which are located in Germany. This was supported by the carpet importers and the government of Germany. This was formed in response to the concern expressed by...

Give the board members of your Special Limited Partnership company some explanations as to how the CAPM is related to the so-called “modern portfolio theory.” Suppose you try to estimate the cost of equity of a company that is not traded on any stock exchange. How would you go about estimating its cost of equity or the required rate of return by the shareholders of that company?

Coming to the relation between CAPM and ‘modern portfolio theory,’ it could be said that MPT was the first to evaluate risks and prove quantitatively how diversification could hold spread risks. The MPT uses returns, risk, and correlation coefficients for the establishment of an optimal portfolio. The basic assumptions of...

Explain and state the assumptions used in the Capital Asset Pricing Model (CAPM) and how you would estimate the cost of equity of the required rate of return by the shareholders of the company using that CAPM.

It is normally found that investors are more concerned about their portfolio of total investments rather than the valuation of individual investments. Therefore, it is quite possible that one or two individual investments in the basket may be high risk and thus contribute to overall high risk. The Capital Asset...

In estimating the rate of return required by the shareholders on their investments in the company’s equity one approach is to use the dividend growth model. Explain the assumptions that are necessary for using the dividend growth model, tell the board members how you would estimate the cost of equity or the required rate of return by the shareholders of the company using that model. Then briefly state and defend your position as to whether the model is appropriate for your Special Limited Partnership (SLP) Company’s use.

The Common Stock of a company has the capacity for providing unexpected future cash flow inflows. Therefore, the stock’s valuation consists of two elements: The dividends that need to be paid each year. The prices investors expect to receive when the stock is sold off at a subsequent date. Hence...

Analyse 24/7 Couriers using the value chain model, specifically focusing on how IS/IT and e-business can improve their value chain. Recommend an IS/IT strategy for 24/7 Couriers based on this analysis.

The Value Chain model of Michael Porter can be used to analyse specific activities through which firms can create value and competitive advantage. 24/7 Overnight Couriers is a small national courier firm that has ten regional depots and one logistics centre across the UK. It is a profitable overnight courier...

Joseph applied for life insurance and wrote a check to pay for the premium. The insurance agent issued him a conditional receipt. On the same day, the insurance company underwriter rejected his application and filed a request to the insurance company’s accounting office to return his premium. The next day, Joseph died in an auto accident before he received the returned premium. Joseph’s wife files a claim on his life insurance contract. Explain whether the claim is covered.

Most of insurance contracts are simple contracts, and in the case of simple contract, there are some essential elements, and out of these three elements are most important such as a) Unrevoked Offer, b) Unqualified Acceptance and c) Consideration and these are discussed below: A) Unrevoked Offer: To start with,...

Jenny was the agent of an artist. She receives 15% of the artist’s earnings as commission. Jenny checked out a special insurance policy that would compensate her if the artist lost her voice and could not perform any more due to illness. One year later, the artist discontinued the agent-client relation with Jenny. A few days after the determination, the artist lost her voice permanently due to an infection. Jenny filed claims with the insurance company. Explain whether the claim is covered.

In the case of insurance, the insurable interest is one of the essential elements, and without it, no insurance will be valid. Insurable interest means the pecuniary relationship that exists between the policyholder and the subject matters. That means only the person who has an insurable interest in the subject...

Louis bought a life insurance contract. In order to save the $300 premium, he lied about his age. Two years later, Louis died in an auto accident. His wife, Mary, filed the claim and the insurance company found out Louis had lied about his age when he filed the application. Explain whether the claim is covered.

There are various principles of life insurance. These are also called essential elements of life insurance, such as: insurable interest,  utmost good faith,  warranties, proximate cause,  nomination and assignment, and  return of premium.  ‘Utmost good faith’ means that both the parties, insured and the insurer, must be of the same...

Annie is married and has a nine-year-old daughter. She was recently hired by an educational publishing corporation as their assistant designer in the kindergarten division. The job requires her to do a lot of typing and editing on a computer. The job requires her to do a lot of typing and editing on a computer. The job comes with a term life insurance equal to three times her annual salary and long-term disability insurance. The long-term disability insurance policy defines total disability as ‘any gainful occupation.’ The company does not provide health insurance and Annie has not purchased any health insurance herself. The financial planner recommends the following health insurance policy. The health insurance policy has a $2,000 deductible and 90% co-insurance clause. a. Suppose Annie was injured in an auto accident and cannot use her hands to type for six months. Her long-term disability insurance provider is willing to provide her training to use voice-activated software in lieu of using her hands to type. Is she able to receive her disability benefits from her long-term disability insurance? Explain. b. Explain why health insurance should be an integral part of a financial plan. c. Annie recently had knee surgery to remove a bone spur in a private hospital. Suppose Annie had purchased the health insurance policy. How much of the above expenses would be covered?

a. People purchase the long term disability insurance policy in order to protect themselves from any kind of unexpected disability for a long period in future because any serious illness or injury can impact negatively on his or her ability to work. At that time, the long term disability insurance...

Explain the law of comparative advantage.

The law of comparative advantage explains the benefits that all parties can get from trade. Parties involve countries, individuals, and regions. The law explains that this is only possible if the parties trade produces goods with differing relative costs. The outcome is called gains from trade.

Explain the four types of unemployment and provide an example of each.

Fictional unemployment This refers to unemployed individuals who decide to stay between jobs voluntarily. This is especially the case with young people who choose to stay without jobs in the course of searching for better ones. Structural unemployment This refers to displaced individuals from their jobs because their skills are...

Assume you work for a New Zealand company exporting a container of kiwis to Mauritania in West Africa. The customs official informs you that there is a delay in clearing your container through customs and it may last a month. However, if you are willing to pay an “expediting fee” of US$200, he will try to make it happen in one week. What would you do? How does Chapter 4 of “Global Strategy” by Mike Peng help you understand and participate in the debate above?

Every business undertaking is very sensitive to time. This is because every minute lost in the course of carrying out businesses activities translates into a loss of huge amounts of cash inflow into the business. In this perspective, for the container to take one month to be cleared by the...

How is government policy a barrier to entry or an aid to entry into an industry? How does government policy influence the profitability of an industry?

The revolutionary movement of companies is significantly impacted by the data that the company gathers from exterior resources. This may entail acquaintance with the prior art in applicable technological and methodical fields, and either arm’s-extent or collaborative contacts with confidential or public mentors and establishments. Offered the governmental and communal...

What are three biosphere rules that can be implemented to produce sustainable and profitable manufacturing? Explain why sustainable manufacturing is or is not an e-business ethical issue? Why might the issue of sustainable manufacturing be important to a business-to-consumer e-business?

Rule 1: Use an economical Palette “Do more with less”. To make simpler the provide chain and create recycling simpler by rethinking the resourcing tactics and radically decreasing the number and categories of materials applied in the company’s production. It is essential to rethink design to require not “What is...

Discuss organizational ethical processes as well as regulatory and legal rulings that might affect consumer trust when using an e-Business website.

Corporations already included in e-commerce, as well as those regarding moving into that matter of operation, require to comprehend that this method of doing business intakes with it new ethical matters. John McClenahen and Jill Jusko provide two good instances of matters unique to this new manner of procedure. They...

Describe the various fiscal policies used by the government, the effects they have on the economy, and the limitations of such policies.

The types of fiscal policies are: expansion policy, neutral policy, and contractionary policy. Neutral policy occurs in the event that government spends the exact amount as it earns from taxes. The expansion stance however occurs when the government expenditure surpasses the revenue. This creates a deficit in the budget. Contractionary...

Discuss the power to tax that the U.S. Constitution grants to the federal government as well as the limits that are placed on such taxation powers. Also include in your answer a discussion on how the government uses such funds to benefit U.S. citizens.

The USA constitution has mandated Congress to levy a tax without regard to the state or census. The federal government, therefore, collects taxes from individuals, businesses, and groupings without discrimination. Other items that are taxed by the federal government include wages, salaries, and commissions. All the tax that is collected...

Discuss the types of inflation as well as the causes and consequences of inflation.

Inflation is the rise in the general price of all goods and services over time in a country. The most common inflation types include commodity inflation, wage inflation, fiscal inflation, foreign exchange inflation, and monetary inflation. Commodity inflation is always evident whenever the price of goods and services shot up...

Describe and compare the two approaches used by the government to calculate Gross Domestic Product (GDP) and discuss the distinguishing characteristics between nominal and real GDP.

Two methods used to calculate GDP include the use of expenditure and also the use of the value-added method, in which the value of every product is calculated at each stage. This method is very efficient in helping to avoid double accounting of goods. Value added = revenue cost –...

Discuss the difficulty economists encounter when trying to forecast changes in the business cycle as well as the tools they use to make such predictions. Include in your answer examples of the importance of accurate predictions for those who make decisions in the corporate world as well as in the government.

One of the difficulties is instability in macroeconomic relations. This difficulty is a real problem in real-time forecasts and for other users of the macroeconomic models. These instabilities are created due to the many variables that are taken into consideration. One major tool or indicator of a shift in business...

Explain the difference between positive and negative externalities, citing several examples of each. Include in your discussion how the government reacts to each type of externality and why.

Externalities are the impacts of a business or economic decision activity that causes external costs or external benefits on another party who is not involved directly in the decision. Negative externalities are related to the environmental consequences of production and use. Some examples of negative externalities include climate change is...

Explain why investing is an essential part of the free enterprise system and discuss the different types of investments and the advantages and disadvantages of each (including bonds, certificates of deposit, money market mutual funds, and stocks).

Investing is a way in which profit (interest) is generated from the capital employed. In a free enterprise, the investor is not directly involved in the generation of the interest or in the venture but only reaps the benefits of the investment. Some types of investments include; a certificate of...

Outline the key factors that led to the rise of the labor movement, the attempts of employers to resist such unionization, as well as the reasons for the overall decline in union membership that has occurred in recent years.

Labor union is an organization of workers who come together to achieve a particular objective. The main areas of trade union involvement include negotiating for wages, hours, and working conditions. The first labor union in the US was the National Labor Union. It was created in 1866 and included many...

Describe the collective bargaining process that union and company representatives use to negotiate contracts as well as the goals that the union representatives bring to the bargaining table. Discuss the pros and cons of labor strikes as well as the methods that are sometimes used to reach settlements and avoid a strike.

Collective bargaining is the process whereby workers and other concerned parties organize with employers and bargain collectively on issues regarding the workplace. That is the coming together of workers to negotiate their employment. One of the processes used by unions in negotiating their contracts is a collective agreement which is...

Your grandparents gave you a diamond ring. Your sister gave you an IOU to cut the grass for you all summer long, and your parents gave you a $100 bill. In a few sentences, explain what type of money each of these items represents and the factors that make each valuable.

A diamond ring is commodity money in that the diamond can be used as a metric of perceived value in conjunction with one another, in various commodity valuations. It can also in itself be used as a medium of exchange. The value of the money is commensurate to the price...

Discuss the four requirements that a market must have in order to meet the criteria of a perfectly competitive market as well as the factors that can lead to imperfect competition in a market.

Perfect competition describes a market in which no buyer or seller has more market power than the other. Perfectly competitive markets are usually allocative and display productivity efficiency. A market that can be described as a perfectly competitive market is such a market that is characterized by the fact that...

How did Automotive Builders, Inc., (ABI) handle forecast risk?

The identified bases behind the conducting of ABI’s risk forecasting are given below: Forecasting sales of the product Applying three scenarios Analyzing historical data Non-statistical risk measurement Identifying feasible competitors as well as Japanese Examining present and future market situations that point to use pistons predicting the increase of demand...

Make recommendations for action for the Arauco company.

The following recommendations are made for the company: It should be put on hold till the market firms up for demand in the pulp. Alternatively, it should get into buying agreements with other paper manufacturers that would buy an assured amount of pulp so that the sales are fixed. If...

What do you conclude should be the direction for Arauco’s strategic scope based on your analysis of the trade-offs between the further expansion of pulp capacity versus vertical downstream integration into paper production?

An analysis of the case has shown that the market for pulp is reaching capacity, and this is indicated by the reduction in prices and demand in international markets. The company cannot sell its pulp over long distances because of the transportation and other logistics costs. It already has sufficient...

Evaluate the strategic viability of Arauco integrating forward into the paper business.

Arauco should move forward and integrate into the paper business since the major rival companies are moving into this market as it has higher earnings. Some of the rival companies are International Paper Co., 25.2 billion sales. Georgia Pacific Corp, 20.2 billion; Stora Enso Corp with 15.2 billion sales; Kimberly...

Assess whether Arauco should build the large new pulp plant at Itata (expanded pulp capacity plus further diversification into sawmilling and wood-processing)? Why has Arauco moved away from its traditional “pulp alone” strategy? Is the new pulp plant at Itata consistent with its moving away from “pulp alone”?

Arauco has three main product segments: pulp products such as bleached and unbleached Kraft pulp; forestry products like pulpwood and sawlogs and wood products that included lumber, remanufactured wood products, and panels. The president wants to invest 61 billion USD to build a chemical pulp plant. It already has a...

What are the sources of competitive advantage for Celulosa Arauco? What do comparisons with its international rivals indicate about Celulosa Arauco’s relative operating economics?

According to Hitt, a company gains a competitive advantage when it has access to resources or has a product that is cheaper and better than the competition. As per the case study by Casadesus, Arauco has a leading business position in the volatile market pulp industry due to its low-cost...