Suppose there are two countries A and B, and they produce good X and Y. Assume perfect competitive market and labor is the only factor of production. Answer following questions based on David Ricardo's comparative advantage model.

In country A, 2 laborers are required to produce one unit of good X and three laborers are required to produce one unit of good Y. In country B, five laborers are required to produce one unit of good X and six laborers are required to produce one unit of good Y. Both countries have 150 laborers respectively.

(1) what are the relative prices of country A, (Px/Py) and (Py/Px)? What are the relative prices of country B, (Px/Py) and (Py/Px)? Assume perfect competitive market.

(2) what is the relative price range in free international trade which is beneficial to both countries in (Px/Py) and (Py/Px)?

(3) Show the wages in each country both in terms of both good X and good Y.

(4) Suppose free international trade equilibrium relative price is set at (Py/Px)=4/3. Draw export supply curve and import demand curve for both countries in good X and in good Y. You may assume equilibrium quantity of your choice.

Explore these statements: Make each questions' answer reference back to Samsung.

- How have changes in technology contributed to the globalization of markets and production?

- Would the globalization of production and markets have been possible without these technological changes?

**You must address at least three scholarly resources in this section.** (Please include resources)

Consider the following, all of which will affect the demand for pounds on foreign exchange markets or the supply of pounds on foreign exchange markets (either one or the other – never both)

State what the effect of each of them will be (will it increase it or reduce it?)

a) There is an increase in demand in Britain for Renault motor cars
b) French consumers start to buy British beef again.
c) LEB (the London Electricity Board) is purchased by EDF (Electricité de France)
d) Large numbers of Russian students come to Britain to study.
e) EDF pays a large dividend to shareholders. Some shares in EDF are owned by a British pension fund.

Watch the attached video then click on the above link "The Fed " and create a thread with at least one page answering and explaining the following:

• What is the mission, or goals, of the Fed?
• Explain the structure of the Fed and the hierarchy of governance.
• Is the Fed a public or private entity? Who owns the Fed?
• If issuing Federal Reserve Notes stimulates the economy, why not print money indefinitely?
• Under what conditions would the Fed purchase securities like U.S. treasuries?
• How does the Fed regulate and supervise banks and why is this important?
• What services does the Fed provide to our country’s financial system and how did it come to be known as the “Bankers Bank”?
• Visit the debt clock website at http://www.usdebtclock.org/ (Links to an external site.) and locate the category M2. This is the present money supply in the hands of the public. Using a timer determine how much the money changes in 1 minute. Is it increasing or decreasing? What do you think this means for the overall economy?
• After you post your narrative, reply to at least two other students comments. Explain why you agree, or better yet, find others that take a different position and explain why you disagree.

1. The city of Ottawa is planning to build a man-make lake at LeBreton flats. The government would like to know how to value and monetize the benefits of such a project. You have been asked to advise the city of the appropriate approach to use for the valuation and monetization of the benefits. What approach will you advice the city to use? What are the key steps of your proposed approach? What are the limitations of the approach?

Which of the following is a FALSE statement regarding the Bank of Canada and monetary​ policy?

A.

The overnight loans rate and the Treasury bill rate move closely together.

B.

When the Bank of Canada sells​ securities, the interest rate rises and the Bank of​ Canada's assets and liabilities both decrease.

C.

The Bank of​ Canada's operating band is the target overnight rate plus or minus 0.25 percentage points.

D.

The Bank rate is always lower than the overnight​ loan's rate.

E.

The Bank of Canada Act places responsibility for the conduct of monetary policy on the​ Bank's Governing Council.

Variation in the price of agricultural and non-agricultural commodities is determined over time, by demand-supply dynamics. The last two decades have seen a significant increase in the volume of international trade and business due to globalisation and liberalisation sweeping across the world. This has led to rapid and unpredictable variations in financial assets prices, interest rates and exchange rates, and subsequently, to exposing Multi-National Corporations to financial risk. As a result, financial markets have experienced rapid variations in interest and exchange rates and stock market prices, thus exposing the corporate world to a state of growing financial risk. We can hedge the risk of price variations in stocks, bonds, commodities, currencies, interest rates, market indices etc. Given this context please conduct the necessary research and answer the following questions.

1)      How is a country's economic well-being enhanced through free international trade in goods and services? Provide and discuss two relevant examples specific to your jurisdiction.   (10marks)

2)      Outline and discuss two methods of payments in international trade and two (2 ) methods of financing international trade for a selected Multi National Corporation in your jurisdiction   

3)      Define and discuss two (2) similarities and two (2) differences between a futures contract and a forward contract. When would the use of one be preferred over the other?   

A key dynamic within any Multi National Corporation (MNC) is management of cash and also foreign exchange risk exposure. Cash management is critical and also heavily influenced by global dynamics. Within the Caribbean and South American jurisdiction, the economic framework is tightly connected with the major Asian economies of China and Japan, as well as the United States and the United Kingdom. The Caribbean and South American economy respectively, have been a barometer of the global economic cycle.

For the South American economy, many Multi-National Corporations   have made significant investments in order to achieve a reduction in the production cost of goods and also diversification benefits. Despite the benefits that could possibly materialize, some South American countries have weak banking systems and also have not been resilient through Global market shocks and Financial Crisis. This weakness may be as a result of politics and the quality of prudential supervision. Given this context, respond to the following questions which require research with respect to the localized context and also within the current market dynamics.

1) You have been asked to evaluate possible sites for a South American production facility that will manufacture your firm's products and sell them to the United Kingdom and Japanese market. Outline and discuss five (5) real exchange rate considerations you should entertain in your evaluation?

Give a brief definition and explanation of the following terms

a)Standard wars

b)Patent troll

c)‘Freemium’products or services

d)Product bundling

1. Suppose you are studying the market for employees in a given competitive labor market in the US. The labor supply is given by: Supply : w = L+2 where w is the wage per hour worked and L is the number of employees in thousands. The demand for labor in this industry is given by: Demand : w = 20 − L, with L the number of employees in thousands.

(a) Based solely on the information given, can leisure be a normal good? If yes, underwhich condition?Currently there is a national minimum wage policy at $7 dollars per hour worked.

(b) Find the equilibrium wage and employment in the market. What is the effect of the minimum wage? Will there be unemployment? If yes, how many people?

(c) One of the candidates supports raising the minimum wage to $15 per hour. How will this policy affect employment and unemployment? Be precise. In what way is it different from the previous minimum wage? Now, suppose that, for some cities in the US, the industry you are studying is actually composed of a single firm hiring workers. Suppose that the labor supply is still the same, which yields the following marginal cost of labor: MCL = 2L+2

(d) On the graph below, draw the demand, supply and marginal cost of labor in such a case. Make sure to label all intercepts. Explain why the marginal cost of labor is higher than the supply for labor.

wage

Labor (thousands)

(e) Find the monopsony wage wm and level of employment Lm, and label them on the graph in part (d). What is the unemployment level? Show your work.

(f) A competitor candidate claims that the $15 minimum wage per hour is too high and says: “We indeed need to raise the minimum wage, but a rise to $9 dollars per hour will be best. It will both create jobs and prevent people being from being fired”. Compare the effect of the three minimum wage policies ($7, $15, and $9 an hour) in single employer cities in terms of the employment level and unemployment. Be precise.

In 2012, presidential candidate Mitt Rommey proposed extending the cut in marginal income tax rates passed during the Bush administration. Explain why theory alone cannot predict how labor supply would be affected if this proposal were implemented. If there were no political or legal impediments to doing so, how could you design an experimental study to estimate the impact of lower marginal tax rates on labor supply?( Says theoretical approach, what the process and the consequences are, and premise)

In this question, we’ll analyze the labor market for IT workers in the Silicon Valley. Suppose the labor market is perfectly competitive and it is characterized by a downward sloping and upward sloping supply curves.

(a) Draw the graph for this market. Mark the equilibrium wage and employment and unemployment.

(b) Is the outcome efficient? Why? Mark any DWL. Suppose all the IT firms unite into an employers’ organization and coordinate their actions in the labor market so that now they behave as a single employer.

(c) Draw a new graph incorporating this information.

(d) Marktheequilibriumwageandemploymentandunemploymentunderthisassumption.

(e) Is the new outcome efficient? Why? Mark any DWL. Suppose the labor market is back to perfect competition. Soon, the US Congress may vote a new bill increasing the annual cap of available H1-B visas. Those are visas for temporary skilled workers and the IT industry is one of the largest users (in 2013 they counted for about 70% of all H1-B visas requested).

(f) Steve, currently employed in the IT industry, is strongly against the bill. He argues “The increase in H1-B visas will lower our wages and make us worse off.” Is he correct? Explain in words and graphically.

(g) Tim disagrees with Steve: “Working with people from different countries and backgrounds improves my creativity and helps me find new ideas. I don’t think the increase in H1-B visas will necessary imply lower wages”. Under what assumption is this scenario possible? Explain the reasoning in words and graphically.

1. Consider a price-taking firm operating in a market with price, p. The production function for the firm is FK,L=KαLβ. Where K is units of Capital and L is units of Labour. If the cost of each unit of capital is r and the cost of each unit of labour is w.
   1. Is the production function homogenous? If so, what is the degree of homogeneity?
   2. Under what conditions does the production function exhibit increasing, constant or decreasing returns to scale?
   3. Write out the Cost Function CK,L. Is the cost function homogenous? If so, what is the degree of homogeneity?
   4. Write out the profit function π(K,L). Is the profit function homogenous? If so, what is the degree of homogeneity?
   5. Find the critical values for the profit function, L*and K*.
   6. Under what conditions are the values in part e. profit maximizing?
   7. Find the maximum profit under the condition specified in part f.
   8. What can you say about the case where the conditions in part f. are violated.

2. For the function z=fx,y=x3- 3xy-y3
   1. Find the equation of this function when y is fixed at the following values: -2,-1,0,1,2. Plot these equations on the same axes, carefully labelling each line.

Given: When entering a highway, a driver saves 300 seconds minus 5 seconds per driver in the highway. The driver gets personal benefits = 300 - 5N and the external costs imposed on all drivers = 5N, where N is the total number of drivers.

1. What is the number of entrants that maximize net benefits for the highway? And what what is the number of entrants at the market equilibrium? (assume no cooperation or regulation, this is an example of the tragedy of the commons).

a) 45 and 90, respectively

b) 30 and 60, respectively

c) 15 and 30, respectively

d) 60 and 120, respectively

2. The Net Benefits from the highway at the optimal level of entrants equals $4500 every year, starting today. Assume the highway generates these benefits for an infinite period (forever). What is the present value of net benefits (NPV) for this highway? Assume r = 5%.

a) 90000

b) 4500

c) 9000

d) 45000

3. Now assume we start receiving these benefits ($4500/year) 10 years from now (every year, forever). What is the new NPV? Assume r still = 5%.

a) 2762.6

b) 55252.2

c) 5525.2

d) 27626.1