a) Define GDP. What does it measure and track? Why do countries report GDP?

b) Suppose you are given the following information about the New Zealand economy, with the values in billions of Dollars. What is the GDP of New Zealand?

Personal consumption $680

Private investment $370

Government expenditure $430

Exports $710

Imports $295

c) Discuss 2 transactions that are not included in the calculation of GDP and provide an example for each.

How to answer to questions below

1. describe the four most common multinational strategies corporations follow based on the pressure they encounter for cost reduction and local responsiveness

2. describe the four different types of structures corporations will have based on their multinational strategy.

3. describe the three main types of attacks corporations will engage in to increase market share.

4. describe the different types of regional economic integration.

QUESTION 1 James mainly sells confectionery items, newspapers, magazines and cigarettes in his convenience store. Noting his small business is not thriving, he thought of selling hot pies and rolls too. Suppose the total cost function for rolls and pies is, TC = 900 + 50Q, Q = (1 + Q2 where Q1 and Q2 denote the quantities of rolls and pies respectfully. If P1 and P, denote the corresponding prices, then the inverse demand equations are: Q1 = 70 – P1 and 0.5Q2 = 100 – P2

REQUIRED:

a) If James decides to charge the same price for rolls and pies per day (that is, P1 = P2), how many of rolls and pies in total should he make in order to maximize the profit of a particular day?

b) If James decides to charge different prices as above for rolls and pies per day (that is, P1 # P2), how many of rolls and pies should he make in order to maximize the profit of a particular day?

c) Which of the above options (a) or (b) is more profitable? Provide the rationale for your answer.

The Turkish Lira fell over 60% against the US dollar since Erdogan became president of Turkey in 2014. Explain how such currency depreciation could lead to stagflation in Turkey. Explain clearly why a country’s currency depreciates when the country faces high relative inflation rates.

“The currency crisis in Turkey is being exacerbated by a skyrocketing annual inflation rate, which by some estimates, exceeds 100 percent. Countries with high inflation rates relative to others tend to see their currencies depreciate.

Over three weeks time, the Turkish lira has plummeted, with selling intensifying into Monday's record low of 7.24 lira per dollar after President Donald Trump on Friday said he would increase tariffs on steel and aluminum originating from Turkey. The escalating tariffs were a direct attack on Turkey's refusal to free jailed American pastor Andrew Brunson. (CNBC, August 14, 2018)”

“Since Turkey suffered an economic crisis of confidence in August – with its currency falling by some 25% that month – emerging markets around the world, from South Africa to Indonesia, have also experienced plummeting currencies and an outflow of foreign investment.

Argentina, which had stabilized after a crisis earlier in the year, has fallen back into emergency mode, increasing interest rates to 60%. Its currency, the peso, has fallen by 45% in 2018 and 24% in August”. (World Economic Forum, September 04, 2018)

One of the main reasons of this capital outflow from countries like Turkey is the fact that the Fed has been increasing the US Interest rate, up to almost 3%. Explain why a higher American interest rate causes an outflow of capital in other countries?

“US oil prices turned negative for the first time on record on Monday April 20th, 2020 after oil producers ran out of space to store the oversupply of crude left by the coronavirus crisis, triggering an historic market collapse which left oil traders reeling.” (The Guardian, April 20th, 2020)

On April 21st, 2020 the US president Donald Trump tweeted: “We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan, which will make funds available so that these very important companies and jobs will be secured long into the future!”

What factors or government policies do you think will help the price of oil to go up?

“US oil prices turned negative for the first time on record on Monday April 20th, 2020 after oil producers ran out of space to store the oversupply of crude left by the coronavirus crisis, triggering an historic market collapse which left oil traders reeling.” (The Guardian, April 20th, 2020) On April 21st, 2020 the US president Donald Trump tweeted: “We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan, which will make funds available so that these very important companies and jobs will be secured long into the future!”

a. Plot the price of oil (crude or brent) for the past 12 months period and explain the decrease in the price by using demand and supply framework.

Show that there is not unemployment in the competitive labor market (You must use graphs) ? And show the implication of the minimum wage law in terms of the unemployment in the competitive labor markets? (You must use graphs)

What effect do governments prefer to pay for the deflationary deficit transfer payments compared to whether they prefer to spend?

Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated savings in heat loss and installation cost are given below:

Useful lives of both alternatives are 10 years. Find the best alternative using A) simple payback period method B) discounted payback period when MARR= 0.13 per year.

“During the second half of 2014, the U.S. dollar made significant gains against all other major global currencies, such as the British pound, Swiss franc, Euro and Japanese yen.” (CNN Business, Jan 5th, 2015) You are working as a foreign exchange trader and your manager has raised the following questions for you to answer

What could the European Central Bank (ECB) have done that might have stopped the fall in the Euro?

In the following two parts:

1. Pick the right answer and fully explain why this is the correct answer
2. Fully explain why each of the other three options are not the correct answer. Provide a relevant example to enhance your answer.

Each Part must be no more than 160 words in total.”

1)A.“Which one of the following is not a cause of economic growth?”

a. reduction in the retirement age

b.advances in technology

c.improvements in education and training

d.the discovery of a new natural fuel

Maximum word count: 160 words

1)B.“After quitting his job as a quality control expert Jack is currently looking for a job. This is referred to as:”

a.Cyclical unemployment

b.Frictional unemployment

c.Structural unemployment

d.Classical unemployment

Maximum word count: 160 words

Analyse the importance of employee relations in respect to influencing HRM(Human Resource Managnment) decision-making.

Need to show the source or reference( book or online...).

Illustrate the application of HRM(Human Resource Managnment) practices in a work-related context, using specific examples.

Need to show the reference or source(book or online or website...).

Provide one example for each of the four factors of production which you have personally provided.