Questions
With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

In: Economics

Define and explain the tactical-strategic capacity decisions, capacity utilization and economies of scale. Establish a relationship...

Define and explain the tactical-strategic capacity decisions, capacity utilization and economies of scale. Establish a relationship between those. Use examples.

In: Economics

2. Airbus sold an aircraft, A400, to Delta Airlines, a U.S. company, and billed $30 million...


2. Airbus sold an aircraft, A400, to Delta Airlines, a U.S. company, and billed $30 million payable in six months. Airbus is concerned with the euro proceeds from international sales and would like to control exchange risk. The current spot exchange rate is $1.05/€ and six-month forward exchange rate is $1.10/€ at the moment. Airbus can buy a six-month put option on U.S. dollars with a strike price of €0.95/$ for a premium of €0.02 per U.S. dollar. Currently, six-month interest rate is 2.5% in the euro zone and 3.0% in the U.S.
a) Compute the guaranteed euro proceeds from the American sale if Airbus decides to hedge using a forward contract.
b) If Airbus decides to hedge using money market instruments, what action does Airbus need to take? What would be the guaranteed euro proceeds from the American sale in this case?
c) If Airbus decides to hedge using put options on U.S. dollars, what would be the ‘expected’ euro proceeds from the American sale? Assume that Airbus regards the current forward exchange rate as an unbiased predictor of the future spot exchange rate.
d) At what future spot exchange rate do you think Airbus will be indifferent between the option and money market hedge?

In: Economics

You are given the following information for a closed economy in a general equilibirum context. Cd...

You are given the following information for a closed economy in a general equilibirum context.

Cd = 5000 + 0.8Y - 80,000r , Id = 1000 - 45,000r.

Md/P = 0.9Y - 4000i ,  π e = 0.05, G = 450, Y-bar= 1000, and M = 3000.

a) Calculate the general equilibrium values of the real interest rate and the price level.

b) Explain what general equilibrium means in the IS-LM framework and how it is attained.

c) What kind of a shock has the Covid-19 pandemic crisis led to in the economies?

In: Economics

In light of the current government decission to start a gradual reopening of the Egyptian economy...

In light of the current government decission to start a gradual reopening of the Egyptian economy despit Coronavirus still exist, suggest the appropriate macroeconomic policies mix (Monetary and fiscal policies) needed to speed up the economic recovery; taking into consideration that Egypt is currently
negotiating a financial agreement with the International Monetary Fund (IMF). This financial package is vital to the Egyptian econmy to fill the financial gap (The backage includes two arrangements, the first known as as“ Rapid Financing Instrument - RFI & the second known as Stand By Arrangement - SBA ”. Show how these suggested macroeconomic policies would achieve the targeted macroeconomic goals ( Hint: use aggregate demand and aggregate supply tools).

In: Economics

Explain each of the best conditions in the issue of corporate profit maximization and cost minimization....

Explain each of the best conditions in the issue of corporate profit maximization and cost minimization.



Compare and explain the balance conditions of the fully competitive market and the balance of the Cournot and Bertrand in the oligopoly model.

In: Economics

Consider each scenario below. Would the economic agent expect a loss or gain from the European...

Consider each scenario below. Would the economic agent expect a loss or gain from the European monetary union? Why? a. A large automobile manufacturer in Germany. b. The owners of a small family-run restaurant in a village of France. c. A large commercial bank in Sweden.

In: Economics

demand equation for haircuts is p=50-1 qd and supply equation is p=20+0.5q.as a result in decrease...

demand equation for haircuts is p=50-1 qd and supply equation is p=20+0.5q.as a result in decrease in income,th demand curve for haircuts shifts,the new demand curve is p=110-qd. graph original demand and supply curves,with original equilibrium price and quantity

In: Economics

Please explain with a graph, how a changing quality is influencing the demand function. Consider two...

Please explain with a graph, how a changing quality is influencing the demand function. Consider two cases (1) the consumers preferring high quality are more affected by a quality change and (2) the consumers preferring low quality are more affected. Please explain the graphs.

In: Economics

You can use 2 methods to make a certain part. Method 1 has an initial cost...

You can use 2 methods to make a certain part. Method 1 has an initial cost of $ 20,000 and a residual value of $ 5,000 after 3; years, that is, its lifespan. Annual operating costs amount to $ 8,500 / year. Method 2 initially costs $ 15,000 and has a lifespan of 2 years. Its residual value is $ 3,000 and the annual operating costs are $ 7,000 / year. Using a 2-year planning horizon and the residual value method implied to find F2, choose the method there that is less expensive using the equivalent annual value (A) at a rate of 15%. ps: Show all your calculations to arrive at the results and make the cash flow diagrams

In: Economics

Please answer the question ASAP thanks In view of the success of the B2B enterprise, to...

Please answer the question ASAP thanks
In view of the success of the B2B enterprise, to analyze the characteristics of the B2B system in the system planning and pattern management, and summarizes the successful elements of the model.

In: Economics

A) What are the principles of tax system design? B) What is the benefit of imposing...

A) What are the principles of tax system design?

B) What is the benefit of imposing GST on food? What are the disadvantages of imposing GST on food?

from the following angles: a. Implication on government revenue b. Implication on health c. Impact on the environment

In: Economics

You deposit $5,000 into an account at the end of year 0. You deposit $5,000 every...

You deposit $5,000 into an account at the end of year 0. You deposit $5,000 every three
(3) months beginning at the end of year 1 and continuing through the end of year 3.
You also deposit into the account an amount X starting at the end of year 6 and repeat it
every three (3) months for a total of four (4) deposits. You withdraw $112,160 at the
end of year 7. After the withdrawal at the end of year 7, there is no more money in the
account. The account pays 4% compounded quarterly. What is the amount you must
every three (3) months deposit starting at the end of year 6 (value of X)?

In: Economics

Throughout the reading Sandel discusses how markets "mark" and corrupt the goods they convey as well...

Throughout the reading Sandel discusses how markets "mark" and corrupt the goods they convey as well as social norms in the societies they inhabit. What does Sandal mean by “corruption” in these contexts? Do you agree with his argument? Explain why/why not.

In: Economics

In the last decade, the World Trade Organisation (WTO) has arguably had less involvement in creating...

In the last decade, the World Trade Organisation (WTO) has arguably had less involvement in creating individual trade agreements as regional trade agreements are becoming more common place. Do you see this shift to regional trade agreements as positive or negative? Do you consider individual trade agreements or regional trade agreements as more important? Justify your arguments and use examples where appropriate.

Word limit-400 words. (should be at least 350 words)

Use at least 1 example.

In: Economics