What is the role of international institutions and organisations in globalisation in the period after 1945?

U.S. oil benchmark crashes below $0 a barrel to mark historic plunge

1. Review   and discuss the collapse of the Futures Oil Market, which   fell into the negative realm in May 2020.                                                                                      

What were the main reasons for this fall into the negative realm? Critically discuss.

Consumer Surplus Background: There has been a lot of talk about trade restrictions, in the hopes that such policies will encourage production and hence job growth in this country. Economists, generally, are skeptical of policies that reduce or restrict international trade. A historical example can help illustrate some, although not all, of that economic skepticism. In 1980, the United States negotiated a Voluntary Export Restraint Agreement (VER) with Japan. The VER limited Japanese automobile exports to the United States. This drop in supply caused the price of domestically (U.S.) produced autos to rise. Basic stylized data are below

• Price of a typical U.S.-produced car (pre-VER) = $6,000

• Price of a typical U.S.-produced car (post-VER) = $7,000

• Number of U.S.-produced cars sold in United States (pre-VER) = 8 million

• Price elasticity of demand for U.S. autos (pre-VER) = -1.5

Prices are loosely typical of 1980, in case you’re wondering why these cars are so inexpensive.

Problem

(a) Draw a graph showing the consumer surplus before and after the VER. Label the initial pre-VER price and quantity (using the numbers above) and the post-VER price and quantity (you do not yet know post-VER quantity but you know pre-VER quantity) and show the pre-VER consumer surplus, the post-VER consumer surplus, and the change in consumer surplus.

(b) Use the above data to calculate the change in consumer surplus that resulted from the VER. Assume a linear market demand curve. Also assume that the demand curve does not shift during the period of interest, and that cars are a sufficiently homogenous commodity that you can analyze this with one demand curve. Calculate the change in consumer surplus as a number (the units will be dollars), and show your work.

Hint: Recall the definition of elasticity, ? = %∆? %∆? = ∆? ∆? ? ?

You can calculate, from the data above, the %ΔP, and you know ε, so you can solve for %ΔQ = ε*%ΔP where the symbol * denotes multiplication. Knowing %ΔQ and initial (preVER) Q you can calculate post-VER Q. That information is enough to calculate the change in consumer surplus, in dollars. Refer to the graph from part (a) to help you see this.

(c) Based on your answer above, would consumers be better off if imports of automobiles to the United States are restricted? Why or why not? What about workers— would U.S. workers be better off if imports are restricted and international trade is reduced?

Harvoni is a lifesaving medication for people with hepatitis C. A four -week supply averaged $32,114 for privately insured patients in the united states in 2015. In Switzerland, the price was $16,861. Why are the prices so different? Should the government intervene to reduce the price? How might the government intervene?

The world has been attacked by COVID - 19 virus, causing dramatic changes in:

1. The level of economic activities.
2. The priorities of different sectors and activities.
3. In the patterns of spending and lifestyles of people.

Explain the above statement, and mention your expectations for life after COVID - 19 in terms of the above three points.

“A set of economic conditions should be available to ensure the success of any business.”

Explain the above statement, based on your study of the interrelations between different markets

The table below shows the possible production combinations of beer and sausage for Heapland

a(1). Suppose current productionis at point D. What is the opportunity cost of producing 10 more barrels of bourbon?Provide a clear explanation in the box below.

d(2). Suppose that the citizens of Heapland have yet to discover the joys of bourbon, so they only produce computers, point H. What happens to the opportunity cost of producing more and more bourbon? Why? Provide a clear explanation in the box below.

c(2). Which is the “best” production point? Why is that point “best”? If you do not think there is a “best” point, why? Provide a clear explanation in the box below.

“Some economies suffer from structural economic imbalances and weak economic performance. This is reflected in different forms of leakages, the most important ones are the outflow of spending reflected in the high level of imports and the use of savings in unproductive activities.”

1. Explain clearly why structural economic imbalances and weak economic performance can cause the above mentioned leakages.

2. What are the economic rules and steps that the country should follow in order to correct such structural imbalances?

1. How can you explain using the economic tools the shocking drop of the world oil prices?

2. What are your expectations concerning the effect of the drop in oil prices on the following:

• Oil exporting countries.
• Oil importing countries.
• The relative importance of non-oil substitutes.
• The environmental damage (degradation).

Post-Keynesian economists contend that the contemporary neoclassical synthesis is not only seriously flawed but also incompatible with Keynes's Ideas. Discuss. On what points do the new Keynesians disagree with the post-Keynesians?

a) The marginalists found that the classical theory of value was inadequate to explain the forces determining prices. Value does not come from the past but value comes from the future. Factors of production are not price-determining but price-determined. Discuss ( 30 marks)

b) The study of an economy is complex and difficult. How did Marshall address this problem? How did he reconcile the positions of the classical and marginal Wily schools?

What are the main barriers to trade, and what are some of the modern trends in reducing/expanding trade barriers? What is a regional market, and why are these developing? Why is understanding these issues important for developing an appropriate international strategy?

• What makes someone a successful entrepreneur? What characteristics are needed? In recent years who have been some of the most influential and profitable entrepreneurs?

With this being the overarching backdrop for our discussion in this module, you should also be looking to touch on the following:

• Do you think people take the time to consider implicit and explicit costs when starting a business?
• Do you believe produces take the time to actually calculate AVC, AFC and ATC? Or are these concepts just for textbooks and college professors?
• Do successful entrepreneurs look to enter markets that lean towards perfect competition? Why or why not?

What are the key issues discussed by Hernando de Soto, particularly related to why capitalism and free markets tend to work in the United States, but not in many other parts of the world. What would Hernando de Soto say should be done to improve the economic progress of less developed countries.

Common impacts of Covid 19 in Egypt, Niger,Lesotho, Mauritius, Tanzania