Assume that you are the international trade manager of XYZ Inc. Because your firm exports goods, to Mexico, your job as international trade manger requires you to forecast the value of year, your firm exported one-billion-peso worth of products to Mexico. The exchange rate between US dollar and Mexican peso was $.02/peso. Now, you are expecting that the following changes will take place in the markets. Assume that everything else remains the same.
1. Last year, the inflation rate in the US was 3% and 8% in Mexico. Now, you are expecting that the following change will take place in the markets. Next, year, the inflation in the US is expected to be 2% while it will increase to 9% in Mexico. With each percentage change in the differential inflation, there will be a 5% change in the demand for exports by the Mexican customers. In addition, for each percentage change in the differential inflation, there will be a 1.5% change in the value of the Mexican peso. Explain how the above changes will affect the value of exports of your company to Mexico.
2. Last year, GDP growth rate in the US was 2.5% while it was 3% in Mexico. Next year, you expect that the national income of US will increase by 3% while Mexican national income, will increase by 4.5%. for each percentage change in the differential national income, there will be a 3% change in the differential national income, there will be a 2% change in the value of the peso. Explain how the above changes will affect the value of exports of your company to Mexico.
Please list detailed steps as to how you came up with your answers.
In: Finance
12. Milo is Aurora’s qualifying child for the earned income credit.
True or False?
13. Milo is a qualifying person for Oscar to claim Head of Household filing status, credit for other dependents, and the earned income credit
True or False?
In: Accounting
You run a firm called Hammocks ‘R Us (R Us) and are in a duopoly with Hammocks, Hammocks, Hammocks (HHH). You both sell hammocks, but your products are differentiated. You and your competitor compete on price with each firm facing a demand curve: Qrus = 24 − 2Prus + 2Phhh and Qhhh= 24 − 2Phhh + 2Prus You each face a fixed cost of $5 and no variable costs.
A) Explain why own price has a negative sign in the demand equation and why competitor’s price has a positive sign. Use economic terms to explain this.
B) Solve for R Us’ price reaction curve.
C) What quantity of hammocks does each company produce?
In: Economics
Sweet Acacia Incorporated began operations on January 2, 2016.
Sweet Acacia employs 10 individuals who work 8-hour days and are
paid hourly. Each employee earns 12 paid vacation days and 5 paid
sick days annually. Vacation days may be taken after February 28 of
the year in which they are earned. Sick days may be taken as soon
as they are earned; unused sick days accumulate. Additional
information is as follows.
Actual Hourly | Vacation Days Used | Sick Days Used | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
2016 | 2017 | 2016 | 2017 | 2016 | 2017 | |||||||
| $11 | $13 | 2 | 10 | 4 | 3 | |||||||
Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017.
2016 | 2017 | |||
|---|---|---|---|---|
| Vacation Wages Payable | $enter a dollar amount | $enter a dollar amount | ||
| Sick Pay Wages Payable | $enter a dollar amount |
In: Accounting
Trident is a US company that sells goods to crown, a
British firm in March for Sterling pounds 1,000,000. Payments are
due in three months that is June. Trident cost of capital is 12%.
The following quotes are available:
a. spot exchange rate: $1.7640/pound
b. Three month forward rate: $1.7540/pound
c. UK 3 month borrowing interest rate is 8% p.a (or 2% per
quarter)
d. US 3 month rate is 8% p.a (or 2% per quarter)
e. US 3 month investment rate is 6% p.a (1.5 per quarter)
June put options on the stock exchange of 12,500 pounds, strike
price is $1.75; 1.5% per pound premium, and brokerage cost $25 per
contract.
June put option in the OTC market 1,000,000 pounds; strike price is $1.75; 1.5% premium. Trident foreign exchange adviser forecasts that the spot rate in 3 months will be $1.76/pound.
REQUIRED
i. Remain unhedged position
ii. Hedge in the forward market
iii. Hedge in the money market
iv. Hedge in the capital market
In: Finance
The company, produce in-house in the US; The cost of equipment totals into 32.5 million at the start of the first year. Which will have a salvage value of 3 million at the end of 6 years. After a recent area 51 raid, the company acquired a team of Area 51 aliens with an annual demand of 500,000. The operational costs and software maintenance is 700,000 annually. As the years go by, an inflation of 16% will demand increasing prices for these values. What will be the net present worth?
In: Finance
Suppose the following: You are an HR Director for a US-based company and are preparing to hire a Chinese citizen for a job in the U.S., which will require him to attain H-1B visa in order to be eligible for employment in the U.S. Research and discuss the process of attaining an H-1B visa. What are the requirements of the employee? What are the requirements and committments of the company? When does it make business sense to support an H-1B visa for an employee?
The response should be a minimum of 500 words.
Thank you!
In: Operations Management
You are an HR Manager for an international company with locations in the US, Australia, UK, Brazil, and China. You have been tasked to develop and implement a new performance appraisal at each of your locations. What do you do?
In: Operations Management
Recently a large regulated utility which supplied natural gas to residential customers filed for bankruptcy because managers had incorrectly predicted a large increase in the price of natural gas and a large decrease in price occurred. Prior to bankruptcy, they had locked in suppliers to very long contracts, thinking the price would move up. At the time of the filing, this company was still viable but decided to file early to keep from draining the resources of the company. a. Is it ethical to use bankruptcy in this manner? b. Who benefited and who lost? Can you think of other business or personal situations that might result in a rash of bankruptcy filings if rapid inflation or deflation occurs?
In: Finance
As the number of firms in an oligopoly increases, and provided the firms do not successfully collude, the
|
price approaches marginal cost, and the quantity approaches the efficient level. |
||
|
price and quantity approach the monopoly levels. |
||
|
price effect exceeds the output effect. |
||
|
individual firms’ profits increase. |
As the number of firms in an oligopolized market
|
decreases, and provided the firms do not successfully collude, the price charged by the firms and the total quantity produced will both decrease. |
||
|
decreases, and provided the firms do not successfully collude, the market approaches the competitive market outcome. |
||
|
increases, and provided the firms do not successfully collude, the market approaches the competitive market outcome. |
||
|
increases, and provided the firms do not successfully collude, the market approaches the monopoly outcome. |
The paradoxical nature of oligopoly can be demonstrated by the fact that, even though the monopoly outcome is best for the oligopolists,
|
they collude to set the output level equal to the Nash equilibrium level of output. |
||
|
they have private incentives to increase production above the monopoly outcome. |
||
|
they do not behave as profit maximizers. |
||
|
self-interest juxtaposes the profits earned at the Nash equilibrium. |
To increase their individual profits, members of a cartel have an incentive to
|
charge a higher price than the other members of the cartel. |
||
|
increase production above the level agreed upon. |
||
|
ignore the choices made by the other firms and act as a monopolist. |
||
|
charge the same price a monopolist would charge. |
In: Economics