GEB 3373 Lecture Notes - Lecture 52: Ad Valorem Tax, Trade Barrier
Document Summary
Enhance reputation w/ general public rather than tout specific advantages of product/service. > the general public: more likely to buy from and support (cid:862)good (cid:272)orporate (cid:272)itize(cid:374)(cid:863) > government regulators: may make for easier negotiations and decrease chance political attack. > process of getting products/services from firm into (cid:272)usto(cid:373)ers" ha(cid:374)ds. Physically transporting goods/services from where they are created to various markets in which they are to be sold. Selecting means of merchandising goods in markets firm wants to serve. Slower transportation modes firms can maintain given inventory level at point of sale only by maintaining higher levels of inventory in transit. If unreliable mode = ship(cid:373)e(cid:374)ts" arrival unpredictable, firm must increase buffer stocks to avoid stock-outs. Slower modes increase fir(cid:373)"s order (cid:272)y(cid:272)le ti(cid:373)e (ti(cid:373)e (cid:271)et(cid:449)ee(cid:374) order placement and receipt), which may cause firms to lose customers. Recent study calculates that each day in transit = an ad valorem tariff of 0. 6%to 2. 1% So, time can become a trade barrier.