Between 2002 and 2005, French wine exports to the United States dropped by nearly 18 percent. Some wine experts blamed part of the decline on what they perceived to be a drop in the quality of French wine. Others blamed a shift in U.S. tastes in favor of domestic wines, and others suggested U.S. residents’ unhappiness with the French government’s foreign policies.

Economists offered a different explanation. During 2003, the dollar depreciated by almost 20 percent relative to the euro. Even if the euro price of a bottle of French wine remained the same, U.S. residents would have seen its dollar price rise by nearly 20 percent. The effective increase in the U.S. price of French wines resulted in a decrease in the quantity of French wine demanded by U.S. residents. Thus, French wine exports to the United States decreased.

What do you predict will happen to French wine exports to the United States, other things being equal, if the dollar appreciates considerably in relation to the euro?

Booyah is a publicly traded company that sells both computer hardware and services. It has no debt outstanding or cash. In the most recent year, the company reported the following information about its two businesses:

Business              Revenues (in $ millions)               Enterprise Value/Sales Unlevered Beta

Computer hardware       $800                                                               0.7 1.22

Computer services          $500                                                               1.9 0.7

The company also provides the breakdown of revenues geographically:

A) Estimate the cost of equity in US dollars for Booyah

B) Now assume that Booyah wants to sell just its hardware business in the United States at fair value (based on the EV/Sales ratio for the sector) in the United States, borrow an additional $280 million in the US and invest the total amount in computer services in China. Estimate the cost of equity in US $ for Booyah after the transaction.

1. Various governments have recently been considering putting limitations on top corporate executive pay and/or taxing corporate executive bonuses very highly (for example, at a 70 percent tax rate)What are the implications of this on the market for top executive talent?

2. The United States is virtually the only country that permits employment - at -will. This means that other countries employees may terminate for cause only. What kind of implications might this have on companies operating in the United States and abroad?

3. President Barack Obama recently issued an executive order granting nearly five million undocumented immigrants work authorizations. What effects do you think this will have on the workplace in the United States? What global effects might this have?

4. The recent global economic downturn has caused many companies to cut back r consider cutting back their training and development budgets. What might the implications of such actions be, both in the short term and the long term?

Should U.S. Imports of Prescription Drugs from Canada Be Widened"

1. Should the United States legalize the importation of lower-cost pharmaceuticals? If so, should this apply to individual consumers, pharmacies, or other entities?

2. If the United States were to permit the importation of lower-cost pharmaceuticals from abroad, should this importation apply to all foreign countries or a limited number? if a limited number, which should they be and why?

3. If the United States were to permit the importation of lower-cost pharmaceuticals from abroad, should this apply to all pharmaceuticals or just to some? If just to some, what criteria should be used?

4. If pharmacies were allowed to import less costly drugs from abroad, should regulations be put into effect to pass on some/all cost savings to consumers? If so, what should they be?

4. If pharmacies were allowed to import less costly drugs from abroad, should regulations be put into effect to pass on some/all cost savings to consumers? If so, what should they be?

Avig Ltd acquired 80% of the issued capital of Non Ltd on 1 July 2015. The following three transactions occurred. 1) On 1 July 2018, Avig Ltd purchased equipment from Non Ltd for $1,500,000. The equipment had originally cost Non Ltd $1,200,000 when acquired on 1 July 2016. Non Ltd had been depreciating the equipment over 12 years using the straight-line method. Avig Ltd expected the remaining useful life of the equipment to be 10 years and also depreciates using the straight-line method. 2) In May 2020, Avig Ltd sold inventory costing $80,000 to Non Ltd for $150,000. One quarter of this inventory remained on hand as at 30 June 2020. 3) Non Ltd paid a final dividend of $500,000 on 30 June 2020. Required Based on the information provided, prepare the intra-group journal entries, including all related tax effects, required upon consolidation as at 30 June 2020. The tax rate is 30%. Note: NCI allocation journals are not required.

It is a general belief that in the United States there is a strong relationship between education and smoking: well-educated people are less likely to smoke. Does a similar relationship hold in France? To find out, researchers recorded the level of education and status of a random sample 459 French men aged 20 to 60. The two-way table below displays the data.

a. State the test you plan to use and determine whether the conditions for test are satisfied.

b. State the hypotheses for this test.

c. At alpha = 0.05, determine whether there is a significant relationship between smoking status and educational level.

The United States is one of the nations in the world with the highest number of Economists. They are even some Economic Nobel laureates in the country. Why do you think the country goes through recessions from time to time when we have many Economists? Why did they not prevent the recession of 2007 – 2012 in the first place? Make sure to include some references at the end of the answer. Thank you.