9. Why would the increase in foreign direct investments create new jobs and what happens next? Explain the process of the changes in equilibrium expenditure and real GDP that result from the increase in foreign direct investment.

10. What determines the increase in aggregate demand resulting from the foreign direct investment?

Please explain the influence and effect of state/sovereign immunity on international project finance guarantees? Your response should be 1000 words long and cited.

Question 2

The total quantity of natural resources to be extracted is 100 units, the rate of return is 5%pa the price now is $20 per unit, the price in 1 year is $30 per unit and the marginal extraction cost for both points in time is the same $10 per unit. How many units should be extracted now? Choose at least one correct answer

1. Approximately 66 units

2. Approximately 100 units

3. Approximately 0 units

4. Approximately 35 units

Question 3

To get the marginal user cost, for Question 2 above, it is simply price less the marginal extraction cost.

1. True

2. False

Question 4

Hotelling rule states that "the value of extracting a quantity of resources now and then earning interest on it such that the value grows to a future point in time" is equal to "the value of extracting a quantity of resource at the same future point in time".

1. True

2. False

1,

Assume you are an engineer working for a chemical production company. You are on the technical team that is responsible for deciding what to do about the dangerous chemical that your company is using to produce its best-selling chemical product. Recent reports have just made known the dangers of this chemical, and the company now needs to decide how to proceed. There are several options to consider: stop producing the harmful product altogether and take a hit on total profits; continue to make the product and sell it, like nothing's wrong, since the federal government has not cracked down. You could also spend money and engineering efforts in R&D to develop a safe chemical that would take its place. There is no guarantee that this would happen any time soon, but the scientists think it is realistically possible. To make matters worse, your biggest competitor produces this harmful product off-shore and is not hampered by the US regulations. If you stop producing this product altogether, the financial positions of the company would be at risk to some extent. Additional marketing efforts would have to be made to sell other products to gain back the lost revenue and profits.

Consider the possible decisions and the ethics of this situation. Take into account, safety, costs, profits, competition, etc. Discuss what you would propose as a member of the decision team and why you would propose it.

2. Six years ago when the relative cost index was 50, a 15 MW power generation facility cost $10M to build. Today the cost index is 80. What would the cost be to produce a 45MW facility today if the power sizing factor is 0.7?

What is your assessment of the financial market situation in Saudi Arabia?

What are diminishing returns to labour, and what consequences do they have for our understanding of how societies can achieve sustained economic growth over time?

Discuss the role of the General Agreement on Tariffs and Trade (GATT) in international business?

((((((((1000 Words))))))

5 pts

Currently, record numbers of Canadians are becoming unemployed due to the ongoing COVID-19 crisis. In this situation, how useful a measure is the unemployment rate? Briefly discuss.

Suppose that the MD = 5E and with its current technology, the firm’s MAC is given by MAC1 = 200 – 5E.

a) Determine the socially optimal level of emissions E. What is the TOTAL Social Cost?

b) Determine the emissions tax that would achieve the socially optimal level of emissions. What is the total PRIVATE costs to the Firm?

Now suppose the firm can adopt a new technology that changes is MAC to New MAC2 = 160 – 4E Assuming no change to standard or tax rate after the change in technology, Calculate change in costs for the firm from adopting the new technology when:

c) The government uses an emissions standard equal to your answer in (a) above

d) The government uses an emissions tax equal to your answer in (b)

Now suppose the government adjusts the standard and/or the tax such that MD = New MAC. Calculate the change in total costs for the firm from adopting the new technology when:

e) The government adjusts the standard, and

f) The government adjusts the tax rate

The Fireyear and Goodstone rubber companies whose factories produce finished rubber and sell it in to the highly competitive world market at a fixed price of $60 per ton. The process of producing a ton of rubber produces a ton of air pollution that affects the environment. This 1:1 relationship between rubber output and pollution is fixed at both factories. Let the output of Fireyear and Goodstone be QF and QG, respectively.

The cost formulas for each firm are as follows:

Fireyear Total cost: C = 300 + 2(QF)^2

Fireyear Marginal cost is MC = 4QF

Goodstone Total cost: C = 500 + (QG)^2

Goodstone Marginal cost is MC = 2QG

Total pollution emissions generated are EF + EG = QF +QG. The marginal damage of pollution is constant per unit of E at $12

a) In the absence of of regulation, how much rubber would be produced by each firm? What is the profit for each firm?

b) The local government decides to impose a Pigouvian tax on pollution in the community. What is the proper amount of such a tax per unit of emissions? What are the post regulation outputs and profits of each firm?

c) Suppose instead of an emissions tax, the government observes the outcome in part (a) and decides to offer a subsidy to each firm for each unit of pollution abated. What is the efficient per unit amount of such a subsidy? Again calculate the levels of output and profit for each firm.

d) Compare the output and profits for the two firms in parts (a) through (c). Comment on the differences, if any, and the possibility of one or both firms dropping out of the market?

Suppose that there are three firms in a region that are producing a common emission. The marginal abatement cost (MAC) for each firm is given by:

MAC1 = 240 – 2E1

MAC2 = 192 – 1.6E2

MAC3 = 320 – 2.67E3

The marginal damage function for the region is given as MD = (4/3)ET {where ET = E1 + E2 +E3}

a) Find the aggregate MAC for the region.

b) Find the socially optimal level of Emissions for the region

c) Suppose that the government imposes a Uniform Standard on the three firms that achieves the socially optimal level. What will be each firm’s MAC and TAC?

d) Now, instead of a standard, the government uses an Emission Tax. Find the tax rate that achieves the socially optimal level of emissions. Determine each firms emissions, TAC, and Tax Bill. Compare the total cost to each firm from a tax policy to your answer in (c).

e) Suppose the government decides to use a Marketable Permit program. If permits are initially given to each firm in the amount equal to the uniform standard, then:

e1). Determine the final allocation of permits (after trading)

e2). What is the net cost to each firm (TAC plus/minus permit revenues/costs)

e3). Compare each firm’s total cost under permit system to that of the uniform standard and the emission tax.

8pts

Illustrate and explain how fiscal policy might be used to deal with the crisis you modelled in the previous question. Can fiscal policy do a good job of fixing the problem? What are some practical problems or consequences of implementing fiscal policy in this situation?

Previous Question

8pts by applying the AD-SAS-LAS model, model the short-run and long-run economic impacts of the current COVID-19 crisis, assuming no fiscal or monetary intervention. Are the predictions of your modelling exercise consistent with the economic outcomes we are currently observing?

Discuss a Fiscal Policy and how it impacts you as an individual (Recent Stimulus Bills, Income Taxes, Excise Taxes or any other law, regulation or standard. Be aware Monetary Policy is NOT a Fiscal Policy.

can some write a discussion about this topic, please