1. How could the level of protection of intellectual property rights influence the decision of investors to invest in a country?
2. Give two examples to show how culture influences the way of doing business, or what can be bought and sold, across borders.
3. Using one certain theory you have learned (of Smith, Ricardo, Krugman, Heckscher and Ohlin…), explain why free trade is a good thing that should be adopted by all countries in the world.

Q18

Consider changes in the government's debt-to-GDP ratio (G/GDP). If the rate of interest on government debt is ________ the growth rate of GDP, a primary budget __________ will _______

Question 18 options:

Suppose we can think of dividing a person’s working years up into three periods. The person has three alternatives. The first is for her to start working immediately, earning $100,000 ($100k) in period 1, $110k in period 2, and $90k in period 3. The second is to spend $50k to attend college in period 1, then earn $180k in each of periods 2 and 3. The third is to attend college in period 1 (as in the previous option), attend graduate school in period 2 (which entails no spending or earnings), and earn $400k in period 3.

a. If her period discount rate is 20%, which option maximizes the net present value (NPV) of her lifetime earnings (net of costs)?

b. How low must her discount rate get to change the answer you got for part (a)? (Using a spreadsheet would be very helpful. Try lowering her discount rate 1 percentage point at a time so see how the NPV of each alternative is affected.)

“Can Selling Be Globalized? The Pitfalls of Global Account Management”, Arnold, David, Julian Birkinshaw, and Omar Toulan

This article is now 20 years old. Which of the authors’ findings do you feel are still relevant? Justify your response. Which are outdated? Justify your response.

   A widget-rationing program requires that anyone who buys widgets first pay a lump sum for a license; i.e. the consumer cannot buy widgets without a license. The license allows the consumer to buy any number of widgets at the controlled price. The proceeds from the sale of the licenses are used to reduce income taxes for widget buyers and non-buyers alike.

With widgets on the x-axis and income on the y-axis, draw the budget constraint before and after the imposition of the license for a consumer who does not buy a license.

Macropoland is currently experiencing a recession--consumption and investment are very sluggish, and unemployment is quite high at 9%. Currently, inflation is very low at 0.4% (the historical average rate of inflation is about 2%). The Macropolish President has just hired you as her economic advisor. Your job is to prescribe policy that would enable the economy to recover from the recession. Explain how you could use the standard tools of expansionary monetary policy and expansionary fiscal policy to stimulate this economy towards economic growth.

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

how do surprise and panic factors impact the stock market

2. One of the leading refrigerator producers has estimated the following demand equation after analyzing 36 regional markets:

Q = + 25,000 – 45P + 20A + 25Pc - 30Ac + 110 I

(12000) (20.2) (14) (9) (48) (50)

R2 = 0.86 F = 28.52

The variables and their assumed values are

Q = Quantity P = Price of the basic Model = 1200 (dollars)

A = Advertising Expenditures = 90 (thousand dollars)

Pc= Average price of the competitor’s product = 1400 (dollars)

Ac= competitor’s advertising expenditures = 80 (thousand dollars)

I = per capita income = 60 (thousand dollars)

a. Compute the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm’s marketing, pricing, and production policies?

b. What would be the effect of a 6 unit increase in the competitor’s advertising expenditures?

c. What would be the change in your advertising expenditures to offset your competitor’s strategy?

d. Conduct a t-test for the statistical significance of each variable. Discuss the results of the t-tests in light of the policy implications mentioned.

e. What proportion of the variation in sales is explained by the independent variables in the equation? How confident are you about this answer? Explain conducting an F-test

•U.S. produced John Deere tractor, price $25,000 in t-1 and t-2.

•Italian produced designer shoes, price €350 in t-1 and t-2.

•Dollars per Euro:

•If in t-1 $1.0741: €1 then $1 = € 1/1.0741 In t1, $1 = € 0.931012    

•t-2 $1.1385: €1                                                In t2, $1 = € 0.8783487

1.What is the Euro price of the tractor in t-1?

In t-2?

1.What is the U.S. dollar price of the Italian shoes in t-1?

In t-2?

1.Draw a demand curve for U.S. tractors illustrating the effect of the change in exchange rates. Only draw the demand curve.

2.Draw a demand curve for Italian shoes illustrating the effect of the change in exchange rates. Only draw the demand curve.

3.All else remaining equal, what will happen to Italian GDP?* Why?

4.All else remaining equal, what will happen to U.S. GDP?* Why?

There are millions of unique visitors that consult Wikipedia, the free

online encyclopedia. The contents of the website are written by voluntary

contributors, and rarely does any of the readers make an edit. In 2011,

Wikipedia’s fund-raising campaign showed that only 3% of non-editing readers

donated to this non-profit. So clearly there are millions of readers who free ride

on the efforts of the editors and donors.

a. (5 points) Do you think that the knowledge made available via Wikipedia

is a public good? Evaluate (that is, provide your arguments for or against)

it based on the non-rivalness and the non-excludability features of a

public good.

b. (5 points) If you were to suggest some ways to reduce the free riding, what

would they be? Be specific.

1. Suppose all of a firm's costs are fixed costs.

1. Draw average and marginal costs for such a firm. Remember to label your axes.
2. Why is it unlikely that this industry would be purely competitive?
3. Assume that the firm is a monopolist. Will there still be any dead-weight (welfare) loss? Graphically illustrate the profit maximizing output, price, profits and welfare loss for this firm.

2. Graphically illustrate the results of long-run equilibrium in pure competition and monopolistic competition. How are the results similar? Different? Compare and contrast the outcomes with regards to efficiency and consumer welfare.

in 2/3 paragraph please explain automation reduces the importance of labor cost as a basis for competitive advantage, so can we assume now that the countries with more capital and technology have the competitive advantage?