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    Guillermo Furniture Store: Concepts of Economics Advantage & Efficiency

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    Explain how the finance concepts found in the readings and how they relate to the context of the scenario.

    The paper effectively and appropriately addresses the following concepts from the text:
    - The concept of the competitive economic advantage.
    - The concept of the value and economic efficiency.
    - The concept of observing financial transactions.

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    Solution Preview

    - Guillermo Navallez has experienced that he does not have competitive economic advantage with respect to the new competitor from overseas who uses high-tech approach. Similarly, Guillermo Navallez has experienced that the largest retailers in nation's headquarters enjoy competitive economic advantage and finally, Guillermo Navallez has lost competitive economic advantage because the cost of labor has increased locally. Essentially, Guillermo Navallez had something that placed his firm above others till the three developments listed above happened. His position against the competitors was economically sound till foreign competition descended on Sonora, till the largest competitors of Mexico decided to open shop at Sonora and till the cost of labor increased drastically at Sonora. Till these three events occurred, Guillermo Navallez enjoyed competitive economic advantage by exploiting the local labor, market conditions and relationship to differentiate his firm from that of his competitors. To establish competitive advantage in future, Guillermo Navallez has three alternatives. He can invest in new technology ...

    Solution Summary

    Concepts of economic advantage and efficiency as well as financial transactions are related to the case at hand in 689 words with 3 references.