Questions
1.) The US is relatively capital abundant, and India is relatively labor abundant. Assume that the...

1.) The US is relatively capital abundant, and India is relatively labor abundant. Assume that the production of rice is more labor intensive than the production of cars. Suppose there are foreign direct investment (FDI) flows from the US to India,and the FDI is in the car industry. Answer the following questions.

a.Explain short-run and long-run effects of the FDI on India's pattern of production, imports and exports.

b.How will you answer in Part (a) change if the FDI from the US to India is in the rice industry? Explain your reasoning.

2.) Starting from the long-run equilibrium without trade in the monopolistic competition model with 10 firms in Home country. Consider what happens when Home begins trading with four other identical countries. Assume that all countries have the same population, and their consumers have identical preferences.

a.Compared with the no-trade equilibrium, how much does industry demand D increase? How much does the number of firms (or product varieties) increase? Explain your reasoning.

b.Does the new firm-level demand curve (d’) shift or pivot due to the opening of trade? Display a figure and explain your reasoning.Compare your answer with the case in which Home trades with only one other identical country.Which case has a more elastic new demand curve d’?

c.How will your answer in Part (a) change if one of the three countries is larger than the other two countries?

In: Economics

Define, describe, and discuss the regulation of employment

Define, describe, and discuss the regulation of employment

In: Economics

If someone asked you does the rate of profit tend to fall under capitalism, what would...

If someone asked you does the rate of profit tend to fall under capitalism, what would you answer? What is the evidence? Note it is not a simple question. During periods when it falls what is the Marxist explanation for the decline?

In: Economics

In the neoclassical money market, how can AS shift to the right without shifting AD? How...

In the neoclassical money market, how can AS shift to the right without shifting AD? How could this be accomplished? Why would the outcome of growth with lower interest rates be desired?

In: Economics

Using Marx’s theory of competition do you think that the U.S. is competitive or is there...

Using Marx’s theory of competition do you think that the U.S. is competitive or is there a new stage of monopoly capitalism? Start by explaining Marx’s view and then review the empirical evidence.

In: Economics

Using examples from the course materials, describe the impacts, both negative and positive, of modern globalization...

Using examples from the course materials, describe the impacts, both negative and positive, of modern globalization on Southeast Asia. Explain how the experiences of the United States and Vietnam compare in terms of globalization. 500 Words.

In: Economics

Briefly describe the Discretionary AND Automatic Fiscal policies that you see taking place over the past...

Briefly describe the Discretionary AND Automatic Fiscal policies that you see taking place over the past month in the U.S. How are these policies meant to help the country? What effect will these policies have on the Federal Government Deficit for 2020?

In: Economics

You are wanting to open a Papa John's Pizza restaurant in Russia. What is the Monetary...

You are wanting to open a Papa John's Pizza restaurant in Russia. What is the Monetary Environment? Back ground on currency system, currency risk, history of currency manipulation, independence of Central Bank. Write two to three paragraphs to give your business partner information on what is mentioned above.

In: Economics

Consider a model in which individuals live for two periods and have utility functions of the...

Consider a model in which individuals live for two periods and have utility functions of the form ? = ??(?1) + .5??(?2). They earn income of $10,000 in the first period and save S to finance consumption in the second period. The interest rate, r, is 20.

a. Set up the individual’s lifetime utility maximization problem. Solve for the optimal C1, C2, and S. (Hint: ????1,?2 = −.5?2/?1 and the budget line is given by C2= (10,000-C1)(1+r) hence the slope of the budget line is -(1+r)). Sketch the optimal point in indifference curve and budget line diagram.

b. The government imposes a 9% tax on labor income. Solve for the new optimal levels of C1, C2, and S. Explain any differences between the new level of savings and the level in part (a), paying attention to any income and substitution effects.

c. Instead of the labor income tax, the government imposes a 9% tax on interest income. Solve for the new optimal levels of C1, C2, and S. (Hint: What is the new after-tax interest rate?) Explain any differences between the new level of savings and the level in part (a), paying attention to any income and substitution effects.

In: Economics

4.Show how a company in a competitive labour market decides to set the number of workers...

4.Show how a company in a competitive labour market decides to set the number of workers they hire in the short run. What is the nature of the demand curve?

In: Economics

Would it be possible for private insurers to offer a form of private insurance that offers...

Would it be possible for private insurers to offer a form of private insurance that offers to pay loss of use/business interruption coverage to business organizations for their loss of income and continuing expenses for such future pandemic incidents. Your paper would have to discuss the characteristics of a pandemic and the appropriateness of such an event as an insurable loss for private insurers.

In: Economics

Between last year and this year, the CPI in Blueland rose from 100 to 115 and...

Between last year and this year, the CPI in Blueland rose from 100 to 115 and the CPI in Redland rose from 100 to 110. Blueland’s currency unit, the blue, was worth $0.90 (U.S.) last year and is worth $0.75 (U.S.) this year. Redland’s currency unit, the red, was worth $0.60 (U.S.) last year and is worth $0.50 (U.S.) this year. Consider Blueland as the home country.

a. Calculate Blueland’s nominal exchange rate with Redland last year.

Instructions: Enter your response rounded to one decimal place.

red/blue.


b. Calculate Blueland’s nominal exchange rate with Redland this year.

Instructions: Enter your response rounded to one decimal place.

red/blue.


c. Calculate the percentage change in Blueland’s nominal exchange rate from last year to this year.

Instructions: Enter your response as an integer value. Be certain to enter "0" if required.

%.


d. Calculate Blueland’s real exchange rate with Redland last year.

Instructions: Enter your response rounded to one decimal place.

red/blue.


e. Calculate Blueland’s real exchange rate with Redland this year.

Instructions: Enter your response rounded to three decimal places.

red/blue.


f. Calculate the percentage change in Blueland’s real exchange rate with Redland.

Instructions: Enter your response rounded to three decimal places.

%.

g. Relative to Redland, you expect Blueland’s exports to be (Click to select)helpedhurtunaffected by these changes in exchange rates.

In: Economics

The US economy has erased nearly all the job gains since the Great Recession PUBLISHED THU,...

The US economy has erased nearly all the job gains since the Great Recession PUBLISHED THU, APR 16 20208:59 AM EDTUPDATED THU, APR 16 202011:51 AM EDT Thomas Franck@TOMWFRANCK


KEY POINTS • The Labor Department reported that the number of Americans applying for state unemployment benefits totaled 5.245 million last week.
• Combined with the prior three jobless claims reports, the number of Americans who’ve filed for unemployment over the last four weeks is 22.025 million.
• That number is just below the 22.442 million jobs added to payrolls since November 2009, when the U.S. economy began to add jobs back after the recession.
  
It took only four weeks for the U.S. economy to wipe out nearly all the job gains in the last 11 years. The coronavirus and the forced closure of business throughout the country again fueled the number of Americans applying for state unemployment benefits, which last week totaled 5.245 million, the Labor Department reported Thursday. Combined with the three prior jobless claims reports, the number of Americans who have filed for unemployment over the previous four weeks is 22.025 million. That number is just below the 22.442 million jobs added to nonfarm payrolls since November 2009, when the U.S. economy began to add jobs back to the economy after the Great Recession. Only 417,000 more U.S. workers need to file for unemployment benefits to erase all nonfarm gains since 2009, a figure likely to be easily surpassed this week.
   2  
      
   The rapid nature of the job losses will be unprecedented, wiping out more than a decade’s worth of job gains in five weeks. We’ll find out for sure next Thursday when the national claims for this week are reported. “While today’s jobless numbers are down on last week, they still mean that all the job gains since the financial crisis have been erased,” wrote Seema Shah, chief strategist at Principal Global Investors. “What’s more, with many workers, including those in the gig economy, not included in these numbers, labor market pains may be even worse than these numbers suggest.” “Concerns for the second half of the year may be underestimated,” she added. “Although governments are looking to lift lockdowns, the reopening of economies will be only gradual, compounding financial strains for businesses and households, suppressing demand and suggesting a slower economic recovery.”
   3  
       Though investors won’t receive the official look at the U.S. unemployment rate for this month until May 8, the Labor Department’s latest nonfarm payrolls report showed droves of layoffs at restaurants and bars as some state governments force the closure of the majority of their businesses. The latest nonfarm report showed payrolls plunged by 701,000 in March, marking the first decline since 2010 and the worst fall since March 2009. The unemployment rate jumped nearly a full percentage point to 4.4% from 3.5%.
   

Instruction

summarize this article, with 30 complete sentence.

In: Economics

how the legal liability regime and personal auto liability insurance may change with the introduction of...

how the legal liability regime and personal auto liability insurance may change with the introduction of fully autonomous vehicles to our environment. If you are hit by a fully autonomous vehicle with no occupant driving, who is liable for any injuries or property damage? Do you sue the vehicle owner, vehicle manufacturer or do we go to some form of no fault liability regime?

In: Economics

In 200 words or more, Discuss some ways in which your organization prepares for change. Can...

In 200 words or more, Discuss some ways in which your organization prepares for change. Can you identify the methods of preparation ?

In: Economics