Discuss the recent trade war between the US and China. Describe what has happened in this trade war, both in terms of policy changes on both the US and Chinese sides. Then discuss what you would recommend the US do in order to get China to change its trade policies with the US, particularly in terms of the requirements it puts on US firms wanting to do business in China (give them their technology, etc) and in terms of creating a more balanced trade with China (no large surplus or shortages in imports versus exports).
In: Economics
Q1. What would happen to relative value of US dollar and Japanese yen if Japan raises its interest rate? Explain the process.
Q2. A Japan-made flash driver is sold at ¥ 10,000 in Japan and sold at $100 in the US market. A US-made flash driver is sold at $100 in the US and ¥ 10,000 in Japanese market now. What would happen to the price of imports and exports in Japan and the US if Japan declares 10% revaluation of Japanese yen? What would happen to the trade between two countries? Explain it.
In: Economics
In what ways do advertisers in magazines use sexual imagery to appeal to youth? One study classified each of 1509 full-page or larger ads as "not sexual" or "sexual," according to the amount and style of the dress of the male or female model in the ad. The ads were also classified according to the target readership of the magazine. Here is the two-way table of counts.
| Magazine readership | ||||
| Model dress | Women | Men | General interest | Total |
| Not sexual | 355 | 507 | 244 | 1106 |
| Sexual | 214 | 92 | 97 | 403 |
| Total | 569 | 599 | 341 | 1509 |
(A) Perform the significance test that compares the model dress for
the three categories of magazine readership. Summarize the results
of your test and give your conclusion. (Use α = 0.01.
Round your value for χ2 to two decimal places,
and round your P-value to four decimal places.)
| χ2 = | |
| P-value = |
(B) Conclusion, choose the best answer from the options below
Reject the null hypothesis. There is not significant evidence of an association between target audience and model dress.
Fail to reject the null hypothesis. There is not significant evidence of an association between target audience and model dress.
Fail to reject the null hypothesis. There is significant evidence of an association between target audience and model dress.
Reject the null hypothesis. There is significant evidence of an association between target audience and model dress.
(C) All of the ads were taken from the March, July, and November
issues of six magazines in one year. Discuss this fact from the
viewpoint of the validity of the significance test and the
interpretation of the results. Choose the best answer from the
options below;
This is an SRS. This gives us no reason to believe our conclusions are suspect.
This is not an SRS. This gives us reason to believe our conclusions might be suspect.
This is not an SRS. This gives us no reason to believe our conclusions are suspect.
This is an SRS. This gives us reason to believe our conclusions might be suspect.
In: Statistics and Probability
You plan to visit one of your friends living in Colorado, America in three months. You expect to incur the total cost of US$20,000 for lodging, meals, and transportation during your stay. As of today, the spot exchange rate is RM_____/ US$ and the three-month forward rate is RM_____/ US$ (please refer to Table 1 below for your given rates). You can buy the three-month call option on US$ with the exercise rate of RM4.3/ US$ for the premium of RM1 per US$. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 3.2 percent per annum in Malaysia and 2 percent per annum in the United States.
TABLE1
| S(RM/USD) | F3m(RM/USD) |
| 4.195 | 4.245 |
In: Accounting
[The following information applies to the questions displayed below.]
Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $310,000 of net income and the following selected transactions occurred in the order given:
a. Issued 110,000 shares of the common stock at $46 cash per share.
b. Reacquired 16,000 shares at $41 cash per share.
c. Reissued 5,500 shares from treasury for $42 per share.
d. Reissued 5,500 shares from treasury for $40 per share. 4.value: 2.00 pointsRequired information Required:
1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to account balances with a minus sign.) eBook & Resources eBook: Explain and analyze common stock transactions. 5.value: 2.00 pointsRequired information
2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
| 3. |
Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.) |
In: Accounting
On July 9, 2018, Omar Co. purchased a machine for 260,000 SA from Saudi Machine Company (SMC). Omar gave SMC 7% note due in 120 days in payment for the machine. (5 Points)
What is the maturity date of the note?
How much interest will Omar pay to SMC on this note?
Pass the Journal entry for Notes Receivable transaction.
On October 16, 2018, Omar informs us that the company is unable to pay the note or interest?
What adjusting entry is required on December 2018?
On October 31, 2017, Aziz Company sells a truck that originally cost 140,000 SA for 95,000 SA cash. The truck was placed in service on January 1, 2012. It was depreciated using the straight-line method with an estimated salvage value of 28,000 and a useful life of 10 years. Record all the transactions? (2.5 points)
The trial balance before adjustment of XYZ Company reports the following balances: (2.5 points)
Dr. Cr.
Accounts receivable $100,000
Allowance for doubtful accounts $ 2,500
Sales (all on credit) 750,000
Sales returns and allowances 40,000
Instructions
Pass the journal entries for estimated bad debts assuming that doubtful debts accounts are estimated to be
(1) 6% of gross accounts receivable and
(2) 1% of net sales.
In: Accounting
Enter the following transactions in the account of L. Linda: 2018 July 1 Started in business with RM 20,000 in the bank. 2 D. Rupert lent us RM 5,000 in cash. 3 Bought goods on credit from B. Brown RM 1,530 and I. Jess RM 4,162. 4 Sold goods for cash RM1,910. 6 Took RM200 of the cash and paid it into the bank. 8 Sold goods on credit to H. Rise RM1,530. 10 Sold goods on credit to P. Taylor RM341. 11 Bought goods on credit from B. Brown RM560. 12 H. Rise returned goods to us RM65 14 Sold goods on credit to G. Pate RM 535 and R. Sim RM 262. 15 We returned goods to B. Brown RM94. 17 Bought van on credit from Aberdeen Cars Ltd RM9,100. 18 Bought office furniture on credit from J. Winter Ltd RM1,800. 19 We returned goods to I. Jess RM130. 20 Bought goods for cash RM 770. 24 Goods sold for cash RM 110. 25 Paid money owing to B. Brown by cheque RM 1,924 26 Goods returned to us by G. Pate RM 34. 27 Returned some of office furniture costing RM180 to J. Winter Ltd. 28 L. Linda put a further RM2,500 into the business in the form of cash. 29 Paid Aberdeen Cars Ltd RM9,100 by cheque. 31 Bought office furniture for cash RM 365.
In: Accounting
We started off this class by looking at the data about Small Businesses to understand the importance of data to the success of the US economy and its significance in the world. Throughout the class, we examined the best management practices for small business managers and owners to increase the chance for success. The Small Business Administration (SBA) has offered some additional facts that may suggest several interesting ideas for the future of small business and its need for good management skills.
Below are some points from the reading to start you thinking.
19.3% of small businesses in the US are family owned
30% of family owned businesses survive the transition from first to second generation
12% of family owned businesses survive the transition from second to third generations
3% of family owned businesses are operated by the fourth generation
2 % of Millennials; 7.6% of generation X; and Baby Boomers at 8.3% are likely to be self-employed.
23% of new entrepreneurs in 2013 were millennials or younger (which was down from 35% in 1996).
The 1 year survival rate for new small businesses is 79.9%
The 5-year survival rate for new small businesses is 50%
The 10-year survival rate for new small businesses is 33%
Best Places to start a business in the US
using this information Evaluate the statistical data presented in the reading, and in the theme introduction and profile (type, owners, business form, etc,) a startup business that is likely to succeed and a business that is likely to exist after 10 years.
In: Operations Management
According to life-cycle models of consumption, a $1000 tax cut would have the largest impact on consumption spending when
a. The tax cut is permanent b. The tax cut is temporary, and tax rates will steadily rise in subsequent years c. The tax cut is temporary, and tax rates will suddenly jump in subsequent years d. None of the above – A $1000 tax cut has the same impact on consumption spending regardless of whether it is temporary or permanent
7. An appreciation of the US dollar tends to a. Discourage Americans from traveling abroad b. Encourage exports of US goods c. Encourage foreigners to travel to the US d. Encourage imports into the US
8. If employers set efficiency wages that are above market wages, then a. Involuntary unemployment would disappear b. Real wage rigidity ceases to be an issue c. There could be permanent involuntary unemployment d. There could be permanent shortages of workers
9. The accelerator property of investment spending implies that a. Fluctuations in investment spending are more volatile than GDP fluctuations b. Fluctuations in investment spending are more stable than GDP fluctuations c. The IS curve is steeper than the LM curve d. The LM curve is steeper than the IS curve
In: Economics
Below shows the information for exchange rates, interest rates
and inflation rates in the US and
Germany. Answer the following questions
Current spot rate: $1.60/€
One-year forward rate: $1.58/€
Interest rate in the US: 2%
Interest rate in Germany:
4%
Inflation rate in the US:
2%
Inflation rate in Germany: 3%
(a) If you borrowed $1,000 for 1 year, how much money would you owe
at maturity?
(b) Find the 1-year forward exchange rate in $ per € that satisfies
IRP from the perspective of a customer
that borrowed $1000 traded for € at the spot and invested in
Germany.
(c) There is one profitable arbitrage at these prices. How to
conduct the covered interest arbitrage if you can
either borrow $1000 in the US or €1000 in Germany? What would be
the profit?
(d) Explain how the IRP will be restored as a result of covered
arbitrage activities.
(e) A fund manager uses the concepts of purchasing power parity
(PPP) to forecast spot exchange rates
using the financial information. Calculate the future euro spot
rate in dollar after one year that would be
forecast by relative PPP.
(Numbers should be rounded to at least 3 decimal places.
Please include currency symbols $, € in
your answer)
In: Finance