Topic 1 You have learned a good deal about production costs and profit in this unit. You have also learned that accountants and economists calculate profit differently. Discuss the difference between how accountants and economists calculate profit giving example of costs each might use in this calculation. Will accounting profit and economic profit always be different? When might accounting profit and economic profit be the same? Topic 2 Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale. Why do firms experience diseconomies of scale as they increase production volume? How might firms “avoid” experiencing diseconomies of scale and what does the long-run average cost curve look like when diseconomies of scale exist?

Submit your responses to the questions below (taken from the textbook’s questions for discussion and review). Chapter 14: Question 1 – What are the consequences of improper packaging for the exporter? Does your response depend on the Incoterms rule used? Does it depend on the insurance policy in force? Question 3 – What are some of the issues and risks that international packaging faces and that are not present in a domestic shipment? Question 4 – Use a product of your choice and ship it from one country to another in a multimodal shipment. What packaging methods would you use? Why? Chapter 16: Question 1 – What is the concept of a Harmonized System number? How is it used? What are the advantages of such a system? Question 2 – Explain the concept of valuation from the perspective of Customs. Why is it particularly important to have a detailed commercial invoice for valuation? Question 4 – Explain the concept of country of origin. How is it currently determined? Why is it such a difficult concept? Why is it important? Question 5 – What are non-tariff barriers? Why are they used? Give a few examples.