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Question

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results:


 

  U.S. LDC
  Sales (units)  100,060   20,100 
  Labor (hours)  20,500   15,500 
  Raw materials (currency)$ 19,800  FC*  20,500 
  Capital equipment (hours)  61,400   5,520 

*Foreign Currency unit

a-1.

Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.)


 U.S.         LDC         
  Labor productivity    
  Capital productivity    


a-2.Do the results seem confusing?
  
 
Yes
No


b-1.

Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.)


 U.S.         LDC         
 Multifactor productivity    


b-2.Do the results make more sense?
  
 
Yes
No


c.

Calculate raw material productivity figures (units/$ where $1 = FC 10). (Round your answers to 2 decimal places.)


 U.S.       LDC        
  Raw material productivity    
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