4. Illustrate how each of the following affects the price and quantity of euro (€) in the U.S. using an exchange rate supply and demand diagram. Assume that the exchange rate in terms of US dollars per euro, and that the currency regime is floating. Identify if the euro is appreciating or depreciating.

a. BMW (a German –manufactured automobile) sales in the US decline.

b. More Germans go to the US during the holidays.

c. U.S. interest rates increase and American investors decide to forego investing euro-denominated assets in favor of investing in the United States.

You are the international manager of a US business that has just invented a revolutionary AI equipment, but costs only half as much to current manufacture. Your CEO has asked you to decide how to expand into the China or India market. Your options are: (i) to direct export from the United States (ii) to license a China or India firm to manufacture (iii) to set up a wholly owned subsidiary in India or China with foreign direct investment. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO

To be considered a wholesaler a business must operate from a fixed location where it receives product from suppliers and ships to its customers.

The Benning Flower Company operates in the western part of the United States. Its main business is supplying and maintaining floral displays in grocery stores. Every other day a Benning employee visits a store and adds new products while removing older product. Benning is MOST LIKELY a:

1. Describe how is the CPI derived and what purpose does it serve?

2. What is the difference between the CPI and the GDP Deflator?

4. How does inflation affect society and who are the losers and gainers from inflation?

5. Define demand pull inflation and cost push inflation.

6. The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and 100 in 2000, the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be:

The Financial Crisis, Long-Run Aggregate Supply and Inflation

In the fall of 2008, the financial markets suffered a major crisis that led to a large decrease in the willingness of banks and other financial institutions to lend either to each other or to consumers and businesses. Much of the investment in capital in the United States is financed by borrowing. Many businesses were unable to borrow. During this time period, the capital stock decreased as worn-out capital was not replaced.

What would the effect on the rate of inflation be if aggregate demand recovers to its prerecession level?

Our world has changed in many areas of the economy since the end of February. It has been many, many years since the United States has seen the shortages and surpluses that we have experienced recently. For your discussion forum this week, pick one of those areas where there has been a shortage, or a surplus. Explain how the changes in equilibrium were affected by demand and/or supply shifts. What happened to prices of that product? Has it changed anything about the way consumers shop or manufacturers produce that product?

• People have a tendency to categorize others into hierarchies. What do you all think has been the source of racial hierarchies in the United States? Do these hierarchies have any validity? Why or why not?

• As you are learning, race is not the simple product of biology (such as the physical features that someone possess), but is actually the result of the ways that society defines how these outward features acts as signs, carrying culturally constructed meanings. Do you agree with this view that race is a cultural construction? Why or why not? Give an example to support your opinion.

Write a 1,500-word paper on the following:

1.Describe the current health care environment in the United States from both the health care administrator and the patient perspective.

2.What are some recent changes in legislation and how does this change influence the way that an administrator would operate within the health care system?

3.What are current trends emerging in health care? Using the current trends, speculate on future of health care risk management from both the perspective of the health care administrator and patient.

Considering Purchasing Power Parity and the Law of One Price:

a. Assume that the current price of a Big Mac in the United States today is $2.75. Assume also that the current price of a Big Mac in Malaysia is 6.5000 ringgits and that the current USDMYR exchange rate is 3.0250 ringgits per $. What is the implied PPP of the USD?

b. Using the assumptions above, what is the under (-) / over (+) valuation of Malaysian ringgits versus the U.S. dollar in percentage terms?

c. What are the long-term implications associated with your answer to part b.?