It was reported that, during the mid-1980s, there was an improvement of living standard in the eastern province of Vietnam, and more and more demand for milk products occurred in the market. As a result, a dairy plant was built during the time. Since the plant was located in the pastoral area with few neighboring pastures, there was a short supply of milk products in the market. Therefore, the dairy plant gained a good economic efficiency and the number of dairy cattle increased from 20 to 50.
But after 1990, there was a rapid development in the leather industry and the prices of raw materials soared due to their scarcity. This resulted in a significant growth in the economic efficiency of leather factories. In view of this, the director of the dairy plant decided to close the plant and to reconstruct it to be a local large-scale leather processing factory within two years, which was financed by the accumulative profits of the dairy plant before.
However, after 1995, the light industry in Vietnam started to flag. At that time, the factory recorded a loss in finance, its operating rate fell from the highest 96% to 42% and there was also a problem in workers’ pay in arrears. On the other hand, the living standard of Vietnam citizens was improving then. It was found that there was a rise in personal income in the country and the consumption of milk products increased at the same time. In order to turn into profit, the director decided to sell all the processing and tanning facilities and machines at 30% of their purchase prices, then started to rebuild the dairy plant again.
As far as we know, the director made his decision twice. According to these decision-makings, we can think out some concepts and theories learnt in microeconomics, please apply as much knowledge you have learnt as possible to analyze these decisions.
Requirements:
* Word limit: at least 400 words
* The essay should be written in English on A4-sized paper.
* Write down your name, student number and major class at the upper left corner of the paper.
(Sample: Damen Chen, 陈大文, 08199XXXXX, Finance X/Business Administration/Logistic)
* Both hard copy and legible hand-writing copy are acceptable.
* The essay assignment will account for 20% of the final assessment.
* Plagiarism or imitation will be punished.
是这篇东东分析啊 就是用微观经济学分析这段话。。。 最好用英文帮答哦。。。 等高手 我等几天没关系啊!还有 下面得 关你什么事情啊 你爱帮不帮......