Explain the transmission mechanism regarding exchange rate effects on balance sheets of nonfinancial firms (for emerging market countries).

read Zhu (2012) Understanding China’s Growth: Past, Present, and Future (free pdf online)

answer discussion questions

1. What distinct periods of China’s economic growth does the article describe? What are

the distinct characteristics of China’s economic performance during each of these

periods?

2. Why was China unable to maintain its world economic power in the 1500-1950s?

3. Why did China’s economic growth and performance differ in 1952-1978 vs post-1978

period?

4. What were the sources of China’s productivity growth after 1978?

5. In your opinion, can China sustain rapid economic growth rates well into the future?

Explain why yes/no and how this may happen.

article from link https://www.aeaweb.org/articles?id=10.1257/jep.26.4.103

Based on the following information, is this good price elastic or price inelastic and is it income elastic or income inelastic. Explain your answer

Here, the basic (Harris-Todaro) model, also shown in the class slides, is shown:  

M = β(W_U^e – W_R), where

M = migration from the rural to the urban sector

W_U^e= the expected urban wage = pW_U, where W_U is the actual urban wage,

p is the probability of finding an urban job, i.e., the employment rate measured as E/(E+U),

where E = employed and U = unemployed.

W* = the subsistence wage in the rural sector that exists in the present of surplus labor.  

W_R = the actual rural wage, which = w* in the presents of surplus labor.

β = a coefficient that represents the responsiveness of migration to rural-urban wage disparities, e.g. if the hukou (household registration) system is

      rigorously enforced, then β is small).

Now use the migration model to explain the following (a diagram is optional):

1. The known agricultural wage is 10. With robust productivity growth, the industrial wage rises to 20.   Rural workers anticipate that if they migrate, the fixed probability of finding a job is 75%.  How is the new equilibrium achieved?

2. Now suppose that the economy is initially in equilibrium. The Chinese government raises the minimum wage in the urban-industrial sector by 20%. However, the number of jobs in the urban industrial sector is fixed.  How is the new equilibrium achieved?

Suppose that the demand for a monopolist's product is estimated to be Q^d = 100 − 2P and its total costs are C(Q) = 10Q. Under first-degree price discrimination, the optimal price(s), number of total units exchanged, profit, and consumer surplus are:

Multiple Choice

• 10 ≤ P ≤ 50; Q = 80, Π = $1,600; CS = $0.

• 10 ≤ P ≤ 100; Q = 80; Π = $1,600; CS = $1,600.

• P = $30; Q = 40, Π = $800; CS = $400.

• P = $30; Q = 40, Π = $600; CS = $0.

Demand: P = 100-2Qd+I

Supply: P = 15 + 3Qs

Suppose that consumer income (I) is 15. Using excel plot how the tax revenue changes as T increases. HINT: Revenue will be on your y axis and the tax (0,1,2,3,…) will be on your x-axis.  Find the revenue maximizing tax. What would be the tax revenue generated and the quantity of goods sold at this tax rate.

• What is the relationship between taxes and Investments strategy?

a. List the title of the piece (it must be written in the 1950s)
I Walk the Line
b. List the American who wrote and/or performed it
Johnny Cash
c. Briefly describe the connection of this musical work to a racial, social, or economic issue IN THE UNITED STATES in the 1950s.

Please answer c.

For BMW

Do a brief competitor analysis. Find 2 relevant competitors. Tell us who the competitors are , whether they are direct or indirect competitors , why they are competitors , and describe one good usability feature of each competitor .

Background: Contracts are essential for business, and will be an integral part of GC operations, so the owners now want to focus on contract law.   Each of the owners has experience with contracts in their businesses, and appreciate the probable risks and liabilities associated with contracts.   They also know that to avoid possible disputes with employees and clients, contracts should be comprehensive, clear, and specific.

The GC owners know that there are various types of contract agreements relevant to their business. GC will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, GC will engage in sales contracts with other businesses, consumers, and clients.  

To reduce disputes and risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. Contracts must define the rights and responsibilities of the parties. Also, since employees and/or independent contractors will be performing cleaning services on clients’ properties, these contracts should require bonding for all employees.

You, Winnie, and Ralph presented draft contracts for GC employees, including different contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees.

The GC owners reviewed the drafts and have some questions about the contracts.

Background Facts You Need to Know: At Winnie’s and Ralph’s request, it is your responsibility to research an provide answers to the GC owners’ questions. As an example, Winnie, Ralph, the GC owners, and you have determined that GC's contract with its cleaner- employees will include the following terms and conditions:

• specific duties to be performed by cleaner-employee
• salary for cleaner-employee
• work hours
• terms of payment for overtime or holiday work, if any
• sick leave
• vacation leave
• training requirements for cleaner-employee
• length of contract
• bonding for cleaner-employee
• periodic performance evaluation and how it will be conducted
• termination of the contract, i.e., a notice of termination, etc.

(Q)- Identify five (5) contract terms and conditions - other than price - that should be included in the GC contract with its cleaning clients.

If the rate of deflation is 1% and nominal interest rates are 1%, what is the real interest rate?

Distinguish between price discrimination and non-price discrimination. Under which market structure is each of them more likely use? Why?

a. List the title of the piece (it must be written in the 1950s)

Where Have All the Flowers Gone or (Move On Up a Little Higher for Mahalia Jackson)

b. List the American who wrote and/or performed it
The Kingston Trio
c. Briefly describe the connection of this musical work to a racial, social, or economic issue IN THE UNITED STATES in the 1950s.

Please answer c.

(400-500 words)

Globalization is a revolution that rivals the Industrial Revolution in scope and significance but has taken place over a few decades rather than over a century which effect to complex result to the extent of defeating the already achieved developments. Discuss the advantages and disadvantages of globalization and also illustrate the countries that affects most and why?