Discuss the short term and long term effect of a devaluation on balance of payments in a monetary model with fixed exchange rates.

suppose that a food processing plant and a chemical factory are located close to each other on the banks of a river. The chemical factory uses the river to discharge its emissions. The food processing plant (located somewhere downstream) suffers damages from the emissions as it requires clean water for its operations. Assuming MAC = 240-2E and MD = 3E, answer the following questions. Draw this diagram before answering the questions below. You will be asked to upload the diagram at the end of this assignment.

(i) If the chemical factory has the right to use the river ( or has the property right), what amount of emissions is it likely to choose when there is no bargaining yet? _____________

(ii) If the chemical factory has the right to use the river ( or has the property right), what amount of emissions is it likely to choose when they reach a bargaining equilibrium? _______________

(iii) If the chemical factory has the right to use the river ( or has the property right), what is the net gain to the chemical factory in the bargaining equilibrium ( i.e from bargaining compared to the situation where they do not bargain)? Remember net gain/benefit means total benefits - total costs.

(iv) If the chemical factory has the right to use the river ( or has the property right), what is the net gain to the food processing plant in the bargaining equilibrium ( i.e from bargaining compared to the situation where they do not bargain)? Remember net gain/benefit means total benefits - total costs.

#make a diagram as well

Discuss the effectiveness of monetary and fiscal policy in a Mundell-Flaming model with floating exchange rates and perfect capital mobility.

1.Define and draw the firm’s production function.
1a. What determinants allow a firm to expand.
1b. Explain why a profit maximizing competitive firm would produce up to the point where price equals marginal costs.

Use a hypothetical balance sheet to explain why a single commercial bank is able to safely lend an amount equal to its holdings of excess reserves. Further, explain why the banking system can in effect create ‘new reserves’ in an amount that is some multiple of the initial level of excess reserves. What makes this possible and what role does the so-called ‘money multiplier’ play in this analysis? Lastly, if the reserve requirement regulation was abolished, what impact would this have on individual and collective bank money creation?

Review the following scenario and respond to the follow-up questions in an APA formatted report of 2400-2600 words. Students will also submit a PowerPoint presentation of no more than 8 slides summarizing the case and your response, to be posted and discussed by peers in Unit 11. Case Tom, Dick, and Harry have been best friends since kindergarten. Tom is the business brain of the group. Dick is the mechanical one and Harry is the creative one. All grown-up, the boys decided that they should start making some serious money to provide for their expanding families. The boys decided that they salvage small scrap metal pieces, nuts, and bolts from junkyards and salvage yards which Harry would design and Dick would cast and weld into decorative art pieces. Tom will raise money from friends and family and look for distribution channels. Dick has a step-daughter, Dorothy, who is 16 and mechanically inclined as well. Dorothy could be Dick’s apprentice. Harry’s wife, Helen, is a recent BBA graduate from Yorkville University specializing in marketing and she could be recruited to help with sales and marketing. Helen’s good friend, Fern, is an award-winning designer with a national home decor chain who the group might be able to induce to join them. Tom’s twin brother, Tim, recently won the lottery and is pursuing his dream to be a photographer. Dick’s wife, Janine, is a real estate agent; she believes she has found an old warehouse in the industrial part of town that could be turned into their headquarters. The owner of the warehouse, Jordan, is retiring and open to the idea of selling or renting the space. How might the business be structured? What might be some of the legal issues that could arise in operating the business and selling the product? What are some of the agreements that might be needed?

Which of the following is true? a. During the contractionary phase of the business cycle, the rate of unemployment is generally quite low b. A depression is a recession that is mild and relatively brief c. The stages of a business cycle are contraction, recession, expansion, boom d. GDP includes spending on recreation and travel, but it does not cover leisure time

Tonight, you and your friends are planning to see Captain America for which you have a $3 off coupon. Without the coupon, the ticket is $10. Once you are at the cinema, your friends now want to see Black Panther. Both movies start and end at the same time. Assume that you have nothing else to do. If you decide to see Black Panther with your friends, what is your opportunity cost?

a. the value of seeing Captain America + $3 b. $10 c. $3 d. the value of seeing Captain America + $10

Which of the following statements about GDP is not correct? a. Real GDP will increase when prices increase or output increases b. Nominal GDP equals real GDP in the base year c. Nominal GDP values production at current prices, whereas real GDP values production at constant prices d. The GDP deflator is the ratio of nominal GDP to real GDP multiplied by 100 Productive efficiency means that a. if all available resources are being used, it is possible to produce more products and services b. given the available inputs and technology, it is impossible to produce more of one good without decreasing the quantity that is produced of another good c. the particular mix of goods being produced represents the equal distribution of resources among different industries d. the particular mix of goods being produced represents the allocation that society most desires

1. How can currency value create a trade barrier? Explain the basis for this claim that China is a currency manipulator. What is the effect of the currency value on Chinese firms and on American firms? What would be China’s motivation for such manipulation? From the U.S. point of view, how should the currency value change and for what purposes?

2. Is Germany a currency manipulator, as suggested in the NPR story? Should the U.S. treat Germany the same as China–for administrative, trade, and international policy purposes? Why or why not?

Explain the trade relationship between US and China, and what are the effect on both sides and the world economy?

China has a trade surplus and the People’s Bank of China (PBC, China’s central bank) purchases all the excess foreign currency earning of the country’s exporters. This policy is equivalent to bond purchases by the PBC through open market operations.

1. What is the impact of the PBC’s policy of foreign currency purchase on the country's money supply?
2. If all foreign conditions are exogenous and the aggregate real income, the price level, and the future conditions of the Chinese economy (including the expected exchange rate) can be taken as given, what is the consequence of the policy for the current interest rate and the spot exchange rate in China?

In 1997, 35 countries signed the convention of the Organization for Economic Cooperation and Development (OECD) to make it a crime to bribe foreign officials. In May 1999, the OECD issued a series of six principles (updated in 2004) that have since become the basis of the corporate governance position of the World Bank and the International Monetary Fund (IMF). However, in 2015 alone:

• In February 2015, Goodyear Tire and Rubber Co. agreed to pay $16.2 million to settle charges from the SEC under FCPA for the payment of bribes in Kenya and Angola to increase tire sales. Goodyear subsidiaries were accused of paying more than $3.2 million in bribes to employees of state-owned and private companies between 2007 and 2011.

• In May 2015, BHP Billiton paid $25 million to settle SEC charges in relation to FCPA offenses. BHP had been accused of improperly sponsoring foreign government officials as guests at the 2008 Summer Olympics in Beijing, China. The case was settled through an internal administrative order without going to court.

• In July 2015, New Jersey-based construction management company Louis Berger International paid $17.1 million to resolve FCPA criminal offenses. In the resolution, the company admitted paying bribes to foreign officials in India, Indonesia, Kuwait, and Vietnam in order to win contracts. The settlement included a deferred prosecution agreement that will require a compliance monitor for at least three years.

• In September 2015, Hitachi Ltd. paid $19 million to resolve SEC charges. The case was brought in relation to payments made to South Africa’s ruling page 123political party in connection with contracts to build two multimillion-dollar power plants.

American companies operating under increasing federal and regulatory scrutiny face real consequences from trying to do business in a global business environment in which foreign business seems to function on the basis of “gifts” at every stage of the transaction.

• In December 2012, the SEC charged Eli Lilly and Co. with violations of the FCPA for improper payments made by subsidiaries to foreign government officials in Russia, Brazil, China, and Poland; and accepted a settlement in the amount of $29 million for offenses including the following:

  The SEC alleged that the Indianapolis-based pharmaceutical company’s subsidiary in Russia used offshore ‘marketing agreements’ to pay millions of dollars to third parties chosen by government customers or distributors, despite knowing little or nothing about the third parties beyond their offshore address and bank account information.

  Employees at Lilly’s subsidiary in China falsified expense reports in order to provide spa treatments, jewelry, and other improper gifts and cash payments to government-employed physicians.

  Lilly’s subsidiary in Poland made eight improper payments totaling $39,000 to a small charitable foundation that was founded and administered by the head of one of the regional government health authorities in exchange for the official’s support for placing Lilly drugs on the government reimbursement list.

  In November 2012, the Department of Justice issued a 120-page “Resource Guide” to the FCPA, including numerous case studies designed to clarify what actions would and would not be considered to be violations of the law. The guide was written as a resource for DOJ attorneys, but attorneys in private practice are encouraging their clients to become familiar with it.

QUESTIONS

1. Is it ethical for U.S. regulations to put U.S. companies at an apparent disadvantage to their foreign competitors? Explain why or why not.
2. If foreign companies pay bribes, does that make it OK for U.S. companies to do the same? Explain why or why not.
3. If you could prove that new jobs, new construction, and valuable tax revenue would come to the United States if the bribe were paid, would that change your position? Explain your answer.

Answer in your own words

Your essay must be written concisely and not exceed 700 words. Indicate your choice clearly

2. Discuss the possible impact of budget deficits on interest rates and private investment in small island economies in the Pacific.

How are household patterns anticipated to change over the next few years? What will be the impact of such changes on the Palestinian demand for different goods?

Consumer buying behavior is playing a vital role on consumer decision making process What do we mean by this concept and how it affects the consumer decision and what are those decisions that the marketer desire to achieve? Identify also types of risk consumers might perceive in the context of purchasing a car?