Given that the world supply curve is horizontal at the world price for a given good, can a subsidy on imports raise welfare in the importing country? 1.) Use the line drawing tool to show the effect of a $1 per unit subsidy by shifting world supply. Label this line 'S1'. 2.) Use the point drawing tool to indicate the quantity demanded and price with the subsidy. Label this point 'E1'. Carefully follow the instructions above, and only draw the required objects.

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1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.