Questions
1. Material 1 With a combined assets of $230.6 billion in 1990, Citigroup jumped to $668.6...

1. Material 1
With a combined assets of $230.6 billion in 1990, Citigroup jumped to $668.6 billion in 1999 after merging with travel agents, nearly trebling. Before the merger of Boeing and McDonnell Douglas, Boeing's assets were only US$ 12.6 billion in 1990 and reached US$ 36.6 billion in 1999 after the merger. After Boeing merged with McDonnell Douglas, there was no competitor in the aircraft manufacturing industry in the United States. People think that the United States is emerging as a "new monopoly economy."
According to statistics, there were 575 joint research institutions officially registered in the United States between 1985 and 1995, and large companies such as General Motors, IBM, and AT& T is a participant in multiple research projects. Because their business is diversified and they participate in the joint research and development of many products, this provides them with opportunities to monopolize the technology market in many fields.
Material 2
In 1998, MNCs from developed countries accounted for $594.7 billion, accounting for 92 per cent of world FDI. In the same period, developed countries attracted $460.4 billion in FDI, accounting for 72 per cent of global FDI.
The United Kingdom's investment in the United States in 1998 increased by more than eight times, and Germany's increase by four times. The investment in these two countries accounted for 60 % of the foreign investment in the United States in 1998.
European investment in Japan surged in 1999. European investment accounted for 79 per cent of all foreign investment in Japan, compared with 33 per cent in the same period in 1998.
Material 3
The United States "Business Weekly" lists the 1,000 most valuable companies in the world in 1999 based on the market value of listed company stocks, of which 494 were in the United States, 19 more than in 1998 and 170 more than in 1990. The United States accounted for eight of the world's top 10 profitable multinational companies in 1998.
Please answer:
(1) Analytical material 1. What are the two forms that Multinational corporations take today in pursuit of monopoly?
(2) According to Material 2.3, what are the characteristics of current MNC investment?
(3) By analysing the above, what are the objectives of MNC strategic partnerships?
2. Why is trade taking place between countries? What is the explanation of international trade theory?

In: Economics

Discuss the role of poverty in economic development. In your discussion, define poverty, discuss how it...

Discuss the role of poverty in economic development. In your discussion, define poverty, discuss how it is measured, discuss the human cost of poverty and discuss the vicious cycle of poverty, VCP.

Briefly discuss poverty in the United States. Include in your discussion the short-run and long-run poverty alleviation policies in the United States.

In: Economics

Of the 17.4 million overnight stays in Denver 477,000 guests chose Airbnb. This represents 2.74% of...

Of the 17.4 million overnight stays in Denver 477,000 guests chose Airbnb. This represents 2.74% of guests choose an Airbnb. In contrast, of the 8.420 billion overnight stays in the United States 33.9 million choose an Airbnb. This represents .40% of guests choose an Airbnb. Is there a statistical difference of Airbnb users in Denver compared to the United States?

In: Statistics and Probability

(a) Microorganisms play a role in the formation of hardness in groundwater. True or false? Explain....

(a) Microorganisms play a role in the formation of hardness in groundwater. True or false? Explain.


(b) In the United States, chlorine is preferred as a disinfectant over ozone because it has a residual. Why is the presence of a residual important? In recent years ozone has been replacing chlorine as the primary disinfectant in the United States. What are the advantages and disadvantages of this?

In: Civil Engineering

How do competing interests differ between the United States and that of other countries with regard...

How do competing interests differ between the United States and that of other countries with regard to energy? How does the United States compare to other countries with regards to its views on energy production (including the use of biomass) and energy consumption? How do the actions of other countries impact the US energy sector?

In: Economics

The United States is said to have the most expensive healthcare system in the world, but...

The United States is said to have the most expensive healthcare system in the world, but only ranks 37th in comparison to other nations in the quality of the health care delivered. In what ways does the United States have better health care than other nations? Cite at least four examples ?( just 200 words )

In: Nursing

PPP Applied to the Euro Assume that several European countries that use the euro as their...

PPP Applied to the Euro Assume that several European countries that use the euro as their currency experience higher inflation than the United States, while two other European countries that use the euro as their currency experience lower inflation than the United States. According to PPP, how will the euro’s value against the dollar be affected?

In: Finance

Global institutions (i.e. UN, IMF, et al) require the consent and cooperation of their member states. Recently, the United States has withdrawn from several

Global institutions (i.e. UN, IMF, et al) require the consent and cooperation of their member states. Recently, the United States has withdrawn from several (e.g. WHO and the Paris Climate Accord), threatened to withdraw from others (e.g. WTO and NATO), and choose not to participate in the Trans-Pacific Partnership. Can global institutions effectively carry on without the world’s largest economy, that is, the United States? What might be the alternative consequences for such institutions?

In: Economics

Describe and analyze the relative importance and the interaction of the “two Chinas,”[i] the Soviet Union,...

Describe and analyze the relative importance and the interaction of the “two Chinas,”[i] the Soviet Union, the United States, and the United Nations during the Korean War.

In: Psychology

8. Purchasing-power parity Using data from The Economist's Big Mac Index for 2016, the following table...

8. Purchasing-power parity

Using data from The Economist's Big Mac Index for 2016, the following table shows the local currency price of a Big Mac in several countries as well as the actual exchange rate between each country and the United States. At the time of the data collection, a Big Mac would have cost you $4.93 in the United States and GBP 2.89 in the United Kingdom. The actual exchange rate between the British pound and the U.S. dollar was $1.63 per pound. The dollar price of a Big Mac purchased in the United Kingdom was, therefore, computed as follows:

Dollar price of a Big Mac in the United KingdomDollar price of a Big Mac in the United Kingdom =  = GBP 2.89×$1.63GBP 1.00GBP 2.89×$1.63GBP 1.00
=  = $4.71$4.71

For the price you paid for a Big Mac in the United States, you could have purchased a Big Mac in the United Kingdom and had some change left over for fries!

Complete the final column of the table by computing the dollar price of a Big Mac for the countries where this amount is not given.

Note: Round your answers to the nearest cent.

Big Mac Index: January 2016

Local Price Actual Exchange Rate Dollar Price
(Foreign currency) (Dollars per unit of foreign currency) (Dollars)
The Eurozone 3.72 1.10
Switzerland 6.50 1.02
United Kingdom 2.89 1.63 4.71
Poland 9.60 0.36 3.46
China 17.60 0.16 2.82

Source: “Currency Comparison, To Go,” The Economist, last modified January 7, 2016, accessed July 8, 2016, http://www.economist.com/blogs/graphicdetail/2016/01/daily-chart-7.

Purchasing-power parity (PPP) theory states that exchange rates would need to equalize the prices of goods in any two countries. For the dollar price of a Big Mac to be the same in both countries, a U.S. citizen would need to be able to convert $4.93 into exactly GBP 2.89. To find the exchange rate at which hamburger purchasing power is the same in both countries, divide the price in the United States by the price in the United Kingdom:

PPP Exchange Rate (U.S. Dollars per British pound)PPP Exchange Rate (U.S. Dollars per British pound) =  = $4.93GBP 2.89$4.93GBP 2.89
=  = $1.71 per pound$1.71 per pound

The exchange rate that would have equalized the dollar price of a Big Mac in the United States and the Eurozone (that is, the PPP exchange rate for Big Macs) is   . This change would mean that the euro had   against the dollar.

If Big Macs were a durable good that could be costlessly transported between countries, which of the following would present an arbitrage opportunity? Check all that apply.

Exporting Big Macs from Switzerland to China

Exporting Big Macs from the Eurozone to the United States

Exporting Big Macs from the United Kingdom to Poland

In: Economics