A. Draw the market for building materials in the U.S. Label the domestic supply curve, the domestic demand curve, and the world price for building materials. Label the quantity of building materials consumed in the U.S., the quantity of building materials supplied in the U.S., and the amount of imports.

B. As part of the U.S.-China trade war, the U.S. government imposed a tariff on imported building materials. Using your graph from part A, illustrate the tariff. What happens to the quantity of building materials consumed in the U.S., the quantity of building materials supplied in the U.S., and the amount of imports?

C. Who bears the burden of the tariff (tax burden)? Explain.

D. Who benefits and who loses from this tariff? What happens to social surplus?

1. Suppose the Federal Reserve raises its target for the federal funds rate while interest rates in other countries do not change. The result will be

a. an outflow of financial capital, a decrease in demand for U.S. dollars, and a depreciation of the U.S. dollar.

b. an inflow of financial capital, a decrease in demand for U.S. dollars, and a depreciation of the U.S. dollar.

c. an inflow of financial capital, an increase in demand for U.S. dollars, and an appreciation of the U.S. dollar.

d. an outflow of financial capital, an increase in demand for U.S. dollars, and an appreciation of the U.S. dollar.

2. CALCULATION QUESTION

A country has $20 billion of domestic investment and net capital outflow of $10 billion. What is saving?

Saving equals $ _____ billion.

3. In-kind transfers,

a. Encourage the poor to earn more income.

b. Decrease the real income of poor families.

c.Are more target-efficient than cash.

d. Are received as cash

The following table contains data for the U.S. balance of payments in a prior year. Answer the question on the basis of this information. All figures are in billions of dollars. U.S. goods exports +$793 U.S. goods imports -1573 U.S. exports of service +280 U.S. imports of services -222 Net investment income +5 Net transfers -81 Capital account -5 Foreign purchases of assets in the U.S. +1198 U.S. purchases of foreign assets -395 Refer to the table above. The data indicate that Americans:

a)Earned more from their investments abroad than foreigners earned from their investments in America

b)Sold more products to buyers abroad than what foreign producers sold to buyers in America

c)Bought foreign assets abroad more than foreigners bought assets in the U.S.

d)Invested abroad more than foreigners invested in America

Suppose the U.S. is engaging with China in a discussion of trade policies. The Chinese diplomat explains to their U.S. counterpart that labor in China is less expensive than in the U.S., so the U.S. consumer would benefit from cheaper products produced in China. Also, since the U.S. has a highly skilled labor force, capable of making the capital intensive goods that the Chinese consumer desires, both countries would benefit from trade.

The U.S. diplomat counters this argument, stating that without trade restrictions, wages in the U.S. would decline. So, by taxing Chinese imports they are protecting the U.S. worker.

Support one or both of the diplomats' arguments with key some of these terms;

Terms:

Comparative Advantage

Efficiency

Globalization

Inefficiency

Laissez-faire

Law Of One Price

Production Possibility Curve

Production Possibility Table

Production Efficiency

According to the open-economy macro model, if the budget deficit of the U.S. increases then U.S. interest rates increase, U.S. domestic investment increases, NCO decreases and the U.S imports decrease because the U.S. dollar appreciates.

Select one:

True

False

In the market for foreign currency exchange, the amount of U.S. net exports desired at each real exchange rate represents the quantity of U.S. dollars demanded for the purpose of buying U.S. goods and services by foreign residents.

Select one:

True

False

Question text

Ceteris paribus, an increase in the U.S. interest rate raises net capital outflow which increases the quantity of loanable funds demanded.

Select one:

True

False

Question text

According to open economy macroeconomic model, an increase in the real exchange rate would tend to shift the demand for U.S. dollars in the foreign-currency exchange market to the left.   

Select one:

True

False

Question text

A tax on imported goods is called a tariff and an import quota is a limit on the quantity of a good that can be produced abroad and sold domestically.

Select one:

True

False

Question 4: Open Economy Macroeconomics
a. Each of the following transactions will affect the balance of payments for the United
States. Indicate which account (current account or financial account) would be affected
by each of these transactions and whether it is a credit (+) or debit (-) transaction.
i. Samsung sells $500,000 of its cellular phones to a U.S. phone service provider.
ii. Mr. Williams in the United States sends his nephew in Australia $200 as a
graduation gift.
iii. A bank in Chicago purchases a Swiss Treasury bond.
iv. Hyundai Motor, a Korean company, builds a new production plant in Alabama.
b. The United States runs a current account deficit. Is the U.S. financial account in deficit
or surplus? Explain the relationship between the two accounts.

Visit the Meeting calendars, statements, and minutes section of the U.S. Federal Reserve Federal Open Market Committee. If this page does not load, type "FOMC meetings" in the "Search" box located on the U.S. Federal Reserve home page. Next, select a date from any year and click on the “Statement” link. Respond to the following questions by writing 1-2 paragraphs for each item:

What action did the Committee take on this date?

What comments (if any) were made with respect to economic growth and/or core inflation?

Comment on any other concerns or issues indicated in the release.

What impact does this announcement have on the interest rate that could be charged to a company who is trying to obtain a loan to expand its operations?

New Media Inc.is planning to expand its business globally. oOh!Media Ltd, an Australian advertising and media company, is among the acquisition targets New Media is evaluating. oOh!Mediahas a sizable lease portfolio. Cindy, New Media’s CFO, is concerned that under IFRS 16 oOh!Media’s financial results and leveragemay look significantly less attractive. Cindy is familiar with the new lease accounting standard for U.S. GAAP, but has not been following the IFRS standard. She has asked your team to 1) explain themajor requirement of IFRS 16, focusing on how it differs from U.S. GAAP; and 2) estimate the impact on oOh!Media’s leverage, EBITDA, net profit and cash flows.

Select one of the 5 foreign countries: China, Germany, Japan, Mexico or the UnitedKingdom, and provide a country profile discussing the topics outlined below. In addition, using EDGAR (http://www.sec.gov/edgar.shtml), find the non-U.S. GAAP financial statements for a company from that country.

Prepare a 4-5 page analysis of the country you chose discussing the following:

Compare the accounting profession in your selected country including professional conduct rules

Identify how the accounting standard are set in that country

Identify two financial reporting standards that differ from those of U.S. GAAP

Identify national characteristics unique to the country that influence accounting

For the two financial reporting standards identified in your paper, use Excel to create an applicable supporting schedule that provides an example of the adjustments that would need to be made to your foreign company’s financial statements for it to comply with U.S. GAAP.

There is no more data to add since it is asking to Select one of the 5 foreign countries: China, Germany, Japan, Mexico or the UnitedKingdom, and provide a country profile and provide the information requested in the assignment.

Ivanhoe Inc. operates a retail computer store. To improve its delivery services to customers, the company purchased four new trucks on April 1, 2020. The terms of acquisition for each truck were as follows:

Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

(a)

Prepare the appropriate journal entries for Ivanhoe Inc. for the above transactions, assuming that Ivanhoe prepares financial statements in accordance with IFRS. For Truck #2, calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)