How significant will Trump's imposed tariffs on China be in the long run?

In 2018 the U.S had a $419 billion trade deficit with China. This was mainly because U.S. exports to China were around $120 billion and imports from China were $540 billion. China also buys so many U.S. Treasury notes that it is the largest lender to the U.S. Government. As of this past December, the U.S. owed $1.12 trillion to China. As most of us know, the U.S. is known for importing everything from computers and phones to footwear and t-shirts from China but Trump's presidency has complicated this trade relationship.

A lot of Trump's presidential campaign was about "Real" Americans and bringing back jobs to the U.S. and as the slogan goes, making America great again.

One of the ways that he accomplished this is by promising to lower this trade deficit with China by imposing tariffs. In particular, he announced a 25% tariff on steel imports and a 10% import on aluminum. This has effected around $34 billion of Chinese imports. Not only does this have an effect on the imports to the U.S., it also affects Chinese companies based in the U.S. and the price of Chinese goods imported to the U.S.

My question is: how significant will these tariffs be for the U.S. and for China in the long run?

 Is normalization of U.S. trade relations with China beneficial to the U.S.?

QUESTION

Read the article below and answer the questions

JOHNSON BOOKS $116 MILLION LOSS

Johnson West Africa  has registered an after-tax loss of $116.4 million for the full-year ended September 2018, down from a profit of $267 million even as chief executive Jackson Atinga quit the firm.

Mr Atinga told Business Daily on phone that on Thursday was his last day in office, with the company having already settled on former head of corporate services Margaret Ombolo as his replacement.

“I need to take a break. It has been extremely demanding and tiresome. It is like a General to war,” Mr Atinga said of his exit that came at almost same time as that of ex-chairperson Catherine Mulele.

Johnson's loss came on the back of sales revenue shrinking by 26 percent to $251.7 million and in the absence of the $452.4 million one-off gain booked in the previous financial year from the sale of its prime property in Nakuru.

The firm’s outgoing CEO said the performance was further weighed down by an extended electioneering period, a tight credit market and increased competition.

“Our revenues declined by 26 percent driven largely by our inability to access key markets in Quarter One as a result of trade uncertainties associated with protracted electioneering period,” said Mr Jackson.

During the financial period, Johnson West Africa undertook various cost control measures, leading to a decline in overhead costs by 38 percent or $123 million to $217.5 million.

Chairperson Lucy Magiwa says the board will still implement more programmes to further shed off costs.

“Our focus in the coming year (ending September 2019) will be achieving the right balance between revenue generation, margin enhancement and cost minimisation,” said Ms Magiwa.

Johnson West Africa has restructured the business model from the manufacture of third party brands and now focuses on the Turbo brand to grow revenue.

The firm has been pushing to grow sales for its Turbo brands launched in 2016 after fallout with Energizer. The American firm had given Johnson West Africa exclusive rights to distribute its products. This was a major risk for the company since the arrangement with Energizer creating control over product distribution and company margins, Mr Jackson said.

REQUIRED:

a) From the above article,

i) Identify 4 items in this article that are associated with financial accounting information

ii) Identify 4 items in this article that are associated with management accounting information

b) Explain the difference between managerial accounting and financial accounting with reference to;

(i) Time orientation, (ii) Emphasis, and (iii) Frequency of reports

c) “Non-profit organizations such as Central and County Government agencies and non-profit hospitals, do not need managerial accounting because they do not have to earn a profit.”

Do you agree with this statement? Why or why not

Davidson Co. had the following transactions in 2017:

- The business was started when it acquired $200,000 in cash from the issuance of common stock
- The company purchased $900,000 of merchandise throughout the year
- During the year, the Company sold merchandise for $1,200,000 (broken out as follows):
- $ 520,000 Cash Sales
- 380,000 Credit Card Sales - The Credit Card Company charges a 4% service fee
- 300,000 Sales on Account
$ 1,200,000
- The merchandise sold was pulled from merchandise inventory and totaled $710,000
- The company collected all of the sales from the credit card receivable
- The company collected $210,000 of Accounts Receivable
- The company paid $190,000 cash for selling and administrative expenses
- Determined that 5% of the ending accounts receivable balance would be uncollectible

REQUIRED
Show the effects of each of the transactions on the elements of the financial statements, using a traditional horizontal
statements model like the one shown below.Use a "+" for an increase, "-" for a decrease and "N/A" for No effect.

Suppose that output per worker in the U.S. and Germany is given by the following:

Wheat              Cars

U.S.                                             200                  100

Germany                                   100                  50

Which of the following is true?

You need to write 5-8 sentences per paragraph for a total of 20-32 sentences overall.

Case A: From Dragon’s Den Manjit Minhas is a Canadian entrepreneur, television personality and venture capitalist. She is the co-founder of Minhas Breweries & Distillery, manufacturer of beer brands such as Mountain Crest Classic Lager, Boxer Lager, Lazy Mutt Ale and Huber Bock. She specializes in marketing with interests in branding and sales. Your Task: You are an entrepreneur and CEO who sees Manjit Minhas as a possible investor in your brewery located in North Cyprus called Five Fingers Mountain Brewery. Your brewery has been in business for one year and you are having troubles with finding qualified brewers and marketing your specialty beer. Choose two business strategies for convincing Manjit Minhas to invest in your company. Decide on how much money you need and what percentage of the equity you are offering Manjit Minhas. Consider whether you are you in a strong or weak BATNA position for convincing Manjit Minhas to invest in your brewery. How does culture play a role in your strategy?

BATNA (Best Alternative to a Negotiated Agreement):

There are two possibilities for the buyer and seller roles—

• a weak BATNA (buyer needs a car now, and seller needs to sell the car now), and

• a strong BATNA (buyer has other alternatives, and seller is considering keeping the car)

Essay Writing Structure for Essay

Essay Topic: The Dragon’s Den case

I am looking for specific business ideas, your evidence, and your reasons for negotiating the situation in the Dragon’s Den case. If you can tie in a cultural aspect, great! As I said in class, "Remember that you may not need to answer every question in the case." You need to write 5-8 sentences per paragraph for a total of 20-32 sentences overall.

Try applying the following format/structure for your essay. Of course, creativity of ideas is your part. You would not write an essay using the same language every time. For example, the topic sentences provided are not the only topics to talk about the problem in the case. You need to adjust the paragraph's information according to your own ideas. Since I gave you an introduction, it may be hard to change it into your own words at this point…but please try.

In the introduction, describe your company, decide on how much money you need and what percentage of the equity you are offering. In the body of the essay, for paragraph 2 describe the problem at your company, what you have in place at this time, and your future projections (Considerations: personal investment to date, previous sales records, sales projections, and your technical knowledge or expertise.) In paragraph 3, discuss the advantages for Minhas if she invests in your company. In the conclusion, provide a summary reiterating why a Minhas should invest in your company.

Introduction paragraph and thesis statement (idea and format) (5-8 sentences): Locals and tourists in North Cyprus consume beer at our local restaurant, cafes and bars. Five Fingers Mountain Brewery is a local brewery that is having hiring troubles finding skilled labor in North Cyprus. In the case presented, Minhas has vast experience in the brewery industry. As the CEO of Five Fingers, I am offering her 15% equity in my company for £40,000. This paper is going to discuss a strategic plan that addresses the cultural and business aspects for pitching a deal to Minhas for financial support in Five Fingers Mountain Brewery.

Supporting paragraph 1 topic sentence and body structure (5-8 sentences): Hiring skilled and qualified brewers for Five Fingers Mountain Brewery is a challenge. Add four sentences that address why it is difficult to hire employees in North Cyprus. Include a sentence with a reason why the evidence is important. Then state, “Based on the previous reasons, this places me in a weak negotiating position” and add a sentence or two on how you can be in a strong position.

Supporting paragraph 2 topic sentence idea (5-8 sentences): In the case presented, being aware of one's negotiating position is an advantage when pitching a deal to Minhas for a partnership with Five Fingers Mountain Brewery. Add 4 more sentences in support of how you will accomplish the task by describing her advantages for investing in your company.

Concluding paragraph's topic sentence idea (5-8 sentences): This essay presented both the weak and strong positions for Five Fingers Mountain Brewery to negotiate a partnership with Manjit Minhas. Add 4 more sentences by summarizing the advantages and disadvantages in a business and cultural aspect. The final sentence includes an optimistic outlook for the future.

You need to write 5-8 sentences per paragraph for a total of 20-32 sentences overall.

Case A: From Dragon’s Den Manjit Minhas is a Canadian entrepreneur, television personality and venture capitalist. She is the co-founder of Minhas Breweries & Distillery, manufacturer of beer brands such as Mountain Crest Classic Lager, Boxer Lager, Lazy Mutt Ale and Huber Bock. She specializes in marketing with interests in branding and sales. Your Task: You are an entrepreneur and CEO who sees Manjit Minhas as a possible investor in your brewery located in North Cyprus called Five Fingers Mountain Brewery. Your brewery has been in business for one year and you are having troubles with finding qualified brewers and marketing your specialty beer. Choose two business strategies for convincing Manjit Minhas to invest in your company. Decide on how much money you need and what percentage of the equity you are offering Manjit Minhas. Consider whether you are you in a strong or weak BATNA position for convincing Manjit Minhas to invest in your brewery. How does culture play a role in your strategy?

BATNA (Best Alternative to a Negotiated Agreement):

There are two possibilities for the buyer and seller roles—

• a weak BATNA (buyer needs a car now, and seller needs to sell the car now), and

• a strong BATNA (buyer has other alternatives, and seller is considering keeping the car)

Essay Writing Structure for Essay

Essay Topic: The Dragon’s Den case

I am looking for specific business ideas, your evidence, and your reasons for negotiating the situation in the Dragon’s Den case. If you can tie in a cultural aspect, great! As I said in class, "Remember that you may not need to answer every question in the case." You need to write 5-8 sentences per paragraph for a total of 20-32 sentences overall.

Try applying the following format/structure for your essay. Of course, creativity of ideas is your part. You would not write an essay using the same language every time. For example, the topic sentences provided are not the only topics to talk about the problem in the case. You need to adjust the paragraph's information according to your own ideas. Since I gave you an introduction, it may be hard to change it into your own words at this point…but please try.

In the introduction, describe your company, decide on how much money you need and what percentage of the equity you are offering. In the body of the essay, for paragraph 2 describe the problem at your company, what you have in place at this time, and your future projections (Considerations: personal investment to date, previous sales records, sales projections, and your technical knowledge or expertise.) In paragraph 3, discuss the advantages for Minhas if she invests in your company. In the conclusion, provide a summary reiterating why a Minhas should invest in your company.

Introduction paragraph and thesis statement (idea and format) (5-8 sentences): Locals and tourists in North Cyprus consume beer at our local restaurant, cafes and bars. Five Fingers Mountain Brewery is a local brewery that is having hiring troubles finding skilled labor in North Cyprus. In the case presented, Minhas has vast experience in the brewery industry. As the CEO of Five Fingers, I am offering her 15% equity in my company for £40,000. This paper is going to discuss a strategic plan that addresses the cultural and business aspects for pitching a deal to Minhas for financial support in Five Fingers Mountain Brewery.

Supporting paragraph 1 topic sentence and body structure (5-8 sentences): Hiring skilled and qualified brewers for Five Fingers Mountain Brewery is a challenge. Add four sentences that address why it is difficult to hire employees in North Cyprus. Include a sentence with a reason why the evidence is important. Then state, “Based on the previous reasons, this places me in a weak negotiating position” and add a sentence or two on how you can be in a strong position.

Supporting paragraph 2 topic sentence idea (5-8 sentences): In the case presented, being aware of one's negotiating position is an advantage when pitching a deal to Minhas for a partnership with Five Fingers Mountain Brewery. Add 4 more sentences in support of how you will accomplish the task by describing her advantages for investing in your company.

Concluding paragraph's topic sentence idea (5-8 sentences): This essay presented both the weak and strong positions for Five Fingers Mountain Brewery to negotiate a partnership with Manjit Minhas. Add 4 more sentences by summarizing the advantages and disadvantages in a business and cultural aspect. The final sentence includes an optimistic outlook for the future.

1. If China were to adopt a floating exchange-rate regime, it would:

a. cause the Chinese trade balance to fall.

b. cause the U.S. trade balance with China to fall.

c. force the U.S. to adopt a fixed exchange rate to maintain the balance of trade.

d. de-stabilize the entire world economy.

2. When Pam from Pennsylvania buys stock in Ford Motor Co., she is contributing to:

a. domestic portfolio investment in the U.S.

b. capital outflow for the U.S.

c. capital inflow for the U.S.

d. foreign direct investment for the U.S.

3. When interest rates in the U.S. increase, we could expect:

a. more foreigners investing in U.S. assets.

b. less foreigners investing in U.S. assets.

c. more U.S. citizens investing abroad.

d. less U.S. citizens investing in U.S. assets.

4. If we consider the savings, investment, and net exports in the United States in recent years, the gap between savings and investment is almost exactly:

a. the government deficit.

b. the balance of payments.

c. direct foreign investment.

d. the trade balance.

5. For any given country, the net capital outflows to all other countries equal:

a. net exports to all other countries.

b. net capital inflows from all other countries.

c. national savings.

d. net foreign direct investment to all other countries.

1. Logitech Company had a current share price of $42.70, and the firm had 700,000 shares of stock outstanding. The CEO of the company is considering an investment project that he is confident will result in an NPV of $300,000. However, investors are pessimistic about the project's prospect and believe that the project would results in an NPV of -$140,000 instead. If the CEO decides to go ahead with the project and the negative NPV as expected by investors is realized, what would the new stock price be?

   A.		$42.30
   B.		$43.50
   C.		$43.20
   D.		$42.50
   E.		$42.90

2. Husqvana Corporation is considering an investment project that generates a cash flow of $640,000 next year if the economy is favorable but generates only $260,000 if the economy is unfavorable. The probability of favorable economy is 60% and of unfavorable economy is 40%. The project will last only one year and be closed after that. The cost of investment is $420,000 and Husqvana Corporation plans to finance the project with $120,000 of equity and $300,000 of debt. Assuming the discount rates of both equity and debt are 0%. What is the expected cash flow to Husqvana Corporationâ s creditors if the company invests in the project?

   A.		$384,000
   B.		$300,000
   C.		$284,000
   D.		$0
   E.		$260,000

3. Marcy Company had a current share price of $52.40, and the firm had 1,500,000 shares of stock outstanding. The company is considering an investment project that requires an immediate $12,600,000 investment but will produce a single cash flow of $25,800,000 after 5 years then close. If Marcy invests in the project, what would the new stock price be? Marcy' cost of capital is 12%. (Hint: calculate the project NPV then consider how the project NPV affects stock price)

   A.		$52.51
   B.		$52.74
   C.		$53.07
   D.		$53.42
   E.		$53.76

4. Which one of the following is least likely to encourage managers to act in the best interest of shareholders?

   A.		Shareholder election of the board of directors, who in turn select managers
   B.		Threat of a takeover by another firm
   C.		Linking manager compensation to share value
   D.		Compensating managers with fixed salaries
   E.		Compensating managers with stock options

Whitenall Corporation produces and sells teeth whitening products. The company has created and patented a formula for a new whitener. The CEO wants to make sure the product is priced competitively. The company anticipates that it will sell 400,000 units of the product in the first year with the following estimated costs:

Required:

1. The company believes that it can successfully sell the product for $45 a bottle. The company’s target operating income is 30% of revenue. Calculate the target full cost of producing the 400,000 units. Does the cost estimate meet the company’s requirements?

Group of answer choices

$33 per bottle, No doesn't meet target

$28.75 Yes does meet target

$35 per bottle, Yes does meet target

$15 per bottle, Yes does meet target

2. A component of the direct materials cost requires a very expensive bleaching agent. If the company could eliminate this one ingredient, the materials cost would decrease by 25%. However, this would require design changes of $300,000 to engineer a chemical equivalent of the ingredient. Will this design change allow the product to meet its target cost?

Group of answer choices

$30.50, Yes does meet target

$31.25 per bottle, No does not meet target

$33 per bottle. No does not meet target

$31.25 per bottle, Yes does meet target

3. The CEO does not believe that the formula should be altered for fear it will tarnish the company’s brand. She prefers that the company become more efficient in manufacturing the product. If fixed manufacturing costs can be reduced by $250,000 and variable direct manufacturing labor costs are reduced by $1 per unit, will Whitenall achieve its target cost?

Group of answer choices

$32.38 per bottle, Yes does meet target

$31.38 per bottle, Yes meets target

$33 per bottle, No does not meet target

$32.38 per bottle, No does not meet target