5. What is the impact of costly investment on trade balance in
the short run?
(a) It decreases trade balance.
(b) It increases trade balance.
(c) It may decrease or increase trade balance.
(d) It has no impact on trade balance.
6. What is the impact of costly investment on trade balance in
the long run?
(a) It decreases trade balance.
(b) It increases trade balance.
(c) It may decrease or increase trade balance.
(d) It has no impact on trade balance.
7. What is the impact of costly investment on current account in
the short run?
(a) It decreases current account.
(b) It increases current account.
(c) It may decrease or increase current account.
(d) It has no impact on current account.
8. What is the impact of costly investment on current account in
the long run?
(a) It decreases current account.
(b) It increases current account.
(c) It may decrease or increase current account.
(d) It has no impact on current account.
In: Economics
Monetary policy refers to Federal Reserve actions to influence the money supply and economic conditions. Fiscal policy is spending and taxing by the government, which can also affect economic conditions. Describe how changes in spending and taxes can affect economic activities. (typing please,thank you.)
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Case study 4 UPS in India - Time to shift gear
Provide a finding of fact for International Business
Provide a full justification and recommendation for each finding of fact
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Two methods of maintenance for indefinite service life are being evaluated:
Method 1. The first cost would be $60,000, and $25,000 would be required at five-year intervals forever.
Method 2. The first cost would be $150,000, and $180,000 would be required at 50-year intervals of forever.
At I i = 12%, which method is the better one?
In: Economics
According to Theodore Moran, when do the greatest spillovers on the local economy occur?
Select one:
a. When there is an appropriate balance between multinational corporations and the state in productive decision-making
b. None of the choices given (above/below)
c. When the multinational corporation is free to make the productive decisions
d. When the UN is responsible for regulating productive decisions.
e. When the state is responsible for regulating productive decisions
In: Economics
In: Economics
provide an example(s) where advertising has positive benefits for consumers. Provide examples where advertising has negative effects. The Government has regulated certain advertising such as cigarettes and marketing to children. Should all advertising be regulated?
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Using examples of goods or services you are familiar with, explain how does the knowledge of price elasticities helps these two entities to make pricing decisions.
(a) A very popular fried koay teow seller in Penang. (400 words)
(b) A fashion boutique. (400 words)
In: Economics
A newly issued bond pays its coupons once annually. Its coupon rate is 8.5%, its maturity is 20 years, and its yield to maturity is 10.5%.
a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 9.5% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. If you sell the bond after one year, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
d. Find the realized compound yield before taxes for a 2-year holding period, assuming that (1) you sell the bond after two years, (2) the bond yield is 9.5% at the end of the second year, and (3) the coupon can be reinvested for one year at a 3% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
e. Use the tax rates in (b) above to compute the after-tax 2-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Explain the impact of the national debt on capital markets and future living standards. What are the consequences of the vastly increased foreign holdings of US debt? What are the consequences if the debt is paid off?
In: Economics
In: Economics
In: Economics
In: Economics
Given the following information for a monopolistic competitor:
Demand: P = 78 – 5(Q)
Marginal revenue: MR = 78 – 10(Q)
Marginal cost: MC = 2(Q) + 10
Average total cost at equilibrium is 14
1. At what output (Q) will this firm maximize profit? _____
2. At what price (P) will this firm maximize profit? _______
3. What is the total revenue (TR) earned at this output level? _____
4. What is the total cost (TC) accrued at this output? _____
5. What profit or loss is experienced by this firm? ______
6. Could this firm be in a longrun situation? (answer 1 = yes, 2 = no) _____
In: Economics
Why does the auto industry prefer uniform (national) standards for automobile emissions as opposed to regionally varying standards? Are uniform standards beneficial to everyone?
In: Economics