Student question (Exam)

Student question (Exam)

by Yosef Faizi -
Number of replies: 1

Since you usually use real cases as examples for your essay questions in the exam, my question would be whether we can include imaginary values or information for our explanations. Ultimately, you want to know whether I am able to transfer the knowledge I have learned.


Let's say you ask me why a company that develops sound equipment for production studios does not move its production site to Bulgaria. 


Then I know what I should answer, e.g. use abitrage effects etc.... and I also know that Bulgaria is a more favorable location than Denmark, but I don't have any concrete information, could I then invent information about Bulgaria so that they would better underline my explanations, so they would also recognize whether I have understood your question?



In reply to Yosef Faizi

Re: Student question (Exam)

by Erika Graf -
If the expected answer is arbitrage, the question should rather be what strategy should a company that develops sound equipment for production studios with a labour cost to sales ratio of over 50 % pursue according to the AAA framework.
More important than listing facts about Bulgaria would be to elaborate on the arbitrage strategy. In addition, Bulgaria would not necessarily be the only country that would come into question.