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.

(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.

Explain moral hazard and give at least two examples. Discuss its implications as an informational asymmetry problem for financial crises.

Explain why quantitative easing to stabilize the US economy was considered a moral hazard (i.e., why will QE paid in 2008 will cause future banks to behave badly).

Explain the so-called impossible trinity (also known as open economy trilemma). Using the diagram, discuss the policy alternatives of the monetary authority under different scenarios.

Select TWO companies from the same industry. Select a country (other than the companies’ home country) that is a market for the companies. Discuss the demographic, cultural and economic characteristics, including how the local demographics and economics affect the value proposition of the product or service offered by the companies. What is each company’s value proposition? Include how each company adjusted its value proposition for the selected country. Research the demographic and cultural characteristics of the middle class in the country or countries you are evaluating?

Explain moral hazard and give at least two examples. Discuss its implications as an informational asymmetry problem for financial crises.

Explain the so-called impossible trinity (also known as open economy trilemma). Using the diagram, discuss the policy alternatives of the monetary authority under different scenarios.

Explain the financial account of the balance of payments. Discuss the benefits and harms of financial globalization taking also into account different types of financial flows and their implications.

Explain moral hazard and give at least two examples. Discuss its implications as an informational asymmetry problem for financial crises

Discuss the increase in income inequality observed in the U.S. over the last 40 years from the perspective of the Heckscher-Ohlin Model. Analyze the potential causes of this increase and provide graphical illustrations if applicable.

What is conscious parallelism? Is this explicit or tacit collusion?

Explain the so-called impossible trinity (also known as open economy trilemma). Using the diagram, discuss the policy alternatives of the monetary authority under different scenarios

Explain the so-called impossible trinity (also known as open economy trilemma). Using the diagram, discuss the policy alternatives of the monetary authority under different scenarios.