One of the current complaints of the U.S. is that China is utilizing discriminatory practices in its pursuit of technology transfers from U.S. Companies. It points to Chinese regulations that gives Chinese parties to a joint-venture agreement the right to use the technology transferred under the agreement even after its expiration.   The U.S. asserts that violates TRIPS Article 3. The Chinese have in turn complained that the U.S.'s action of imposing of a 25% tariff on Chinese goods is a violation of the WTO provision against unilateral retaliation against another WTO Member.

Explain which party should prevail and why. Limit your analysis to the facts presented here.

1. The United States military has a presence around the world, from Embassies, bases in foreign countries, and detachments linked with allied nations’ military. Likewise, there are private security contractors worldwide, both in places with a U.S. military presence, as well as places with little to no U.S. military presence. In a 500-word response, differentiate between the role of private security contractors operating outside the United States with the role of military personal outside U.S. borders. Compare and contrast their roles in operational areas where the U.S. is engaged in armed conflicts, such as the Global War on Terrorism, Iraq, and Afghanistan, as well as in areas where no formal conflict exists.

1. GDP uses the market value of goods and services because it:

A. provides a common valuation that allows us to compare one economy to another.

B. provides the opportunity to compare lists of outputs to see who produced more.

C. is the only data that can be gathered about goods and services.

D. markets are the only way to value goods and services.

2. GDP counts:

A. only final goods and services, because otherwise certain things would be double-counted and the GDP would be overestimated.

B. only intermediate goods and services, because those are easier to track.

C. both intermediate and final goods and services because it is important to capture all values, regardless of which market they take place in.

D. all values that are reported to the government.

3. U.S. Gross National Product includes goods produced by:

A. foreign firms on U.S. soil.

B. U.S. firms on foreign soil.

C. foreign firms on foreign soil.

D. None of these statements is true.

4. John is a U.S. citizen who works for Walmart located in France. John's work contributes to:

A. U.S. GDP, but not U.S. GNP.

B. U.S. GNP, but not U.S. GDP.

C. both U.S. GDP and U.S. GNP.

D. neither U.S. GDP nor U.S. GNP.

5. The market value of a good or service is the:

A. price at which it is bought and solD.

B. government's valuation using the CPI.

C. price at which producers are willing to sell an output.

D. None of these statements is true.

6. The circular flow model illustrates the crucially important idea of macroeconomics, which is that:

A. every expenditure of someone in the economy is exactly equal to the income of another.

B. only two markets exist in every economy—input and output.

C. income is lower when there is more spending on goods and services.

D. the flow of two things in the economy—"stuff" and "money"—travel in the same direction.

7. Using the expenditure method to estimate GDP, we would include:

A. consumption, investment, government purchases, and net exports.

B. consumption, government revenues, durable goods, and net exports.

C. consumption, investment, government purchases, and exports.

D. consumption, investment, government purchases, and imports.

8. Investment, as a part of GDP, includes:

A. spending on productive inputs such as stocks, bonds, and other types of financial instruments.

B. any goods that are bought by firms who plan to use those purchases to produce other goods and services in the future, rather than consuming them.

C. consumption goods that are purchased by households.

D. any item you buy that you are looking for a return on over time.

1. What is the difference between “Earnings Management” and “Financial Reporting Fraud”? Discuss the difference based on the definition of Earnings Management by Healy and Wahlen (1999)

2. What is a “big bath” in accounting? Why CEO is inclined to create a big bath?

Explain the information value chain. How do business events turn into data, then into information, and then into knowledge? Give an example starting with the business event of the purchase of a CD at Best Buy all the way to useful information for the CEO and other decision makers.

5. Explain the Principal-Agent problem in private enterprises. Cite an example or two to show the seriousness of the problem in even some of the biggest North American businesses. How does a Japanese CEO differ from his North American counterpart?

Is it better for a firm's actual stock price in the market to be under, over, or equal to its intrinsic value? Would your answer be the same from the standpoints of stockholders in general and a CEO who is about to exercise a million dollars in options and then retire? Explain.

If you were a CEO making a decision upon where to locate future business operations, would you locate in a low-tax or high-tax country, all other factors being equal? As a practical matter, why is this a complicated decision?

Is it better for a firm's actual stock price in the market to be under, over, or equal to its intrinsic value? Would your answer be the same from the standpoint of stockholders in general and a CEO who is about to exercise a million dollars in options and then retire? Explain.

You have been given responsibility for overseeing a bank’s small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.60 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a company’s inventory costing method is important, you present the following balance sheet information.

You ask the former loans manager to find amounts for (a), (b), (c), and (d) assuming the company began the year with 5 units of inventory at a unit cost of $13, then purchased 8 units at a cost of $14 each, and finally purchased 6 units at a cost of $18 each. A year-end inventory count determined that 4 units are on hand.

Required:

1. Determine the amount for (a) using FIFO, and then calculate (b) through (d).
2. Determine the amount for (a) using Weighted Average, and then calculate (b) through (d).
3. Determine the amount for (a) using LIFO, and then calculate (b) through (d).
4. Determine the current ratios using (i) FIFO, (ii) Weighted Average, and (iii) LIFO
5. Determine whether the company would be in violation or compliance with the loan covenant if the company were to use (i) FIFO, (ii) Weighted Average, and (iii) LIFO.