Managerial Economics

Managerial Economics
All questions should be answered for each case study. If calculations would enhance your commentary, it is strongly urged that you include these calculations. The length of a case study is determined by how well you include the requested information.

Case Studies—each case study should follow this format: Prior to your analysis, you should provide a brief summary of the case, a paragraph or so in your own words with in text citations. You then can choose to answer the questions in paragraph form or type the question and then answer it. Either way is fine, but I do require that your answers have in text citations to support what you are saying. Some of the questions are your opinion, but you should also support that with concepts from the text.

Succinct, complete answers that show that you have prepared your writing with thought and reflection are preferable to answers that ramble and are not reflective of the course content. A complete, well-developed response can be given in one paragraph, several paragraphs or a page depending on the question and your ability to articulate your answer. If it requires more than one page that is acceptable as well. The written assignments will be critiqued on the technical part of your answer, the clarity and logical sequence of your response, and grammar and spelling.
You are encouraged to use textbook concepts as you attempt to explain in your own words the answers to the assignments. Word choice and sentence structure that is suitable for graduate-level work is expected.

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Each question must have at least 1-2 citations (Textbook citation required, must include page number, or outside source). Please contact me if you have any questions.

In order to earn full points, the posts need to be substantial and relate real world examples to the questions being asked. Any references you use should be in APA format and listed at the end of your post

APA style writing (Times Roman, font 12…) Double spaced
APA style reference and quotes/phrases need to be referenced within the essay as well, for example… “This concern was real enough to stop… (DeMarzo, 2014 page 260).”

They will use a program and check for Plagiarism, it has to be less than 20%.
TEXTBOOK LINK:
Brickley, J., Smith, C., & Zimmerman, J. (2009). Managerial economics and organizational architecture (5th ed.). New York: McGraw Hill/Irwin.

http://home.comcast.net/~drbrucehartman/Brickley5Online.pdf Same textbook (Wording is exactly the same)

Other resources:
http://highered.mheducation.com/sites/0073375829/student_view0/chapter2/index.html

Question:
Please see Case Study Attached. Questions in case study need to be answered, using context in Chapter 3. This can also be found in Chapter 3 in the textbook page 92
ANALYZING MANAGERIAL DECISIONS:
Deprivatization
Since 1992, approximately 70,000 state-owned enter-
prises in Russia were privatized. Many of the private
buyers were foreign companies and investors, for
example from the United States and Western Europe.
The idea was to move from a centrally planned
economy to a market system.

Yet in the late 19905 a weak economy caused
great concern among Russian voters. Politicians,
such as Moscow’s Mayor Yuri M. Luzhkov, began
promoting “deprivatization” or, as the locals put it,
deprivatimtsia. Under this policy certain past privati-
zations would be declared illegal and the transactions
would be reversed. The company then would be
either run as a state-owned enterprise or sold to
another party. For example, in October 1999, a court
stripped Wall Street’s Kohlberg Kravis Roberts and
the U.S.-Russia Investment Fund of their majority
interest in the Lomonosov Porcelain Factory in
St. Petersburg. These companies had purchased
the factory in 1998, but the courts ruled that the
company’s initial privatization five years earlier was
illegal. Sources suggested that the company was likely
to be resold to Soviet-era managers who were set to lose
their jobs when the new investors entered the picture.
Property Right Security in Russian
Politicians, such as Luzhkov, vow that not all
privatizations will be reversed-only the illegal ones.

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But one current problem is that privatization legislation

is nebulous about what could be termed a violation.

Anything from a missing piece of paper in the original

tender oEer to investment requirements not being

met might be ruled a violation. And virtually anyone

could file a complaint to trigger an inquiry into a

past deal.

I. What impact will the prospect of deprivatization
have on invcstment by managers of privatized
firms?

2. What chect will deprivatization have on foreign
investment in Russia?

3. Do you think that mass dcprivatization is in the
long-run best interests of Russia?

4. Who gains from deprivatization? Who loses?

5. Assuming more people are hurt by deprivatiza-
tion than helped, why would a local politician
support such a policy?

some»: M. Coker (1999). “That Russian Company You Boumt?

Maybe YOU Didn‘t.” BusinessWeek (09061139! 13), 70.

 

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