Pick a subculture within the U.S., (e.g., bikers, goths, etc.) and clearly explain why it is called a subculture. Also explain why it came into social existence, as well as identify what utility it serves for group members. Lastly, describe the similarities and differences between the subculture you selected and the dominant/mainstream culture in the U.S.

What Happened During the 2007–2009 Recession?

• How were GDP, inflation, and unemployment affected during the recession, and how does the model show this?
• What monetary policies and fiscal policies were implemented during the recession?
• How did the recession affect U.S. trade relations and the U.S. dollar exchange rate?

Pick a subculture within the U.S., (e.g., bikers, goths, etc.) and clearly explain why it is called a subculture. Also explain why it came into social existence, as well as identify what utility it serves for group members. Lastly, describe the similarities and differences between the subculture you selected and the dominant/mainstream culture in the U.S.

The differential between the salary of top executives and the lowest paid workers in the same country is quite small in Japan, at least in comparison to the United States. The same is true in unions (president of union versus union workers). Explain why the differential might be small in Japan and in U.S. unions but much larger in private U.S. corporations.

1) Recently the British Pound suffered an unexpected depreciation in value. Which of the following actions being considered by Coventry Furniture of London, a purely domestic furniture manufacturer and retailer, would be considered a highly unlikely response to the depreciation of the pound?

A) Coventry might choose to maintain its domestic sales prices constant in pound terms.

B) Coventry might try to raise domestic prices because competing imports are now priced higher in England.

C) Coventry might try to lower domestic prices because competing imports are now priced higher in England.

D) none of the above

2) For a firm that competes internationally to sell its products, a depreciation of its domestic currency relative to markets where the firm exports goods, should eventually result in ________ sales at home and ________ sales abroad, other things equal.

A) fewer; greater

B) fewer; fewer

C) greater; greater

D) greater; fewer

3) Which one of the following management techniques is likely to best offset the risk of long-run exposure to receivables denominated in a particular foreign currency?

A) Borrow money in the foreign currency in question.

B) Lend money in the foreign currency in question.

C) Increase sales to that country.

D) Increase sales in this country.

4) A British firm and a U.S. Corporation each wish to enter into a currency swap hedging agreement. The British firm is receiving U.S. dollars from sales in the U.S. but wants pounds. The U.S. firm is receiving pounds from sales in Britain but wants dollars. Which of the following choices would best satisfy the desires of the firms?

A) The British firm pays dollars to a swap dealer and receives pounds from the dealer. The U.S. firm pays pounds to the swap dealer and receives dollars.

B) The U.S. firm pays dollars to a swap dealer and receives pounds from the dealer. The British firm pays pounds to the swap dealer and receives dollars.

C) The British firm pays pounds to a swap dealer and receives pounds from the dealer. The U.S. firm pays dollars to the swap dealer and receives dollars.

D) The British firm pays dollars to a swap dealer and receives dollars from the dealer. The U.S. firm pays pounds to the swap dealer and receives pounds.

Heart of Atlanta Motel v. United States

“One need only examine the evidence which we have discussed . . . to see that Congress may . . . prohibit racial discrimination by motels serving travelers, however ‘local’ their operations may appear.”
—Clark, Justice

The Heart of Atlanta Motel, located in the state of Georgia, had 216 rooms available to guests. The motel was readily accessible to motorists using U.S. interstate highways 75 and 85 and Georgia state highways 23 and 41. The motel solicited patronage from outside the state of Georgia through various national advertising media, including magazines with national circulation. Approximately 75 percent of the motel’s registered guests were from out of state. The Heart of Atlanta Motel refused to rent rooms to blacks.

Congress enacted the Civil Rights Act of 1964, which made it illegal for motels, hotels, and other public accommodations to discriminate against guests based on their race. After the act was passed, the Heart of Atlanta Motel continued to refuse to rent rooms to blacks. The owner-operator of the motel brought an action in U.S. district court, Heart of Atlanta Motel v. United States, to have the Civil Rights Act of 1964 declared unconstitutional. The plaintiff argued that Congress, in passing the act, had exceeded its powers to regulate interstate commerce under the Commerce Clause of the U.S. Constitution.

The U.S. Supreme Court held that the provisions of the Civil Rights Act of 1964 that prohibited discrimination in accommodations were constitutional as a proper exercise of the commerce power of the federal government. The U.S. Supreme Court stated,

The power of Congress over interstate commerce is not confined to the regulation of commerce among the states. It extends to those activities intrastate which so affect interstate commerce or the exercise of the power of Congress over it as to make regulation of them appropriate means to the attainment of a legitimate end, the exercise of the granted power of Congress to regulate interstate commerce.
Heart of Atlanta Motel v. United States, 379 U.S. 241, 85 S.Ct. 348, 1964 U.S. Lexis 2187 (Supreme Court of the United States

Why was this case so important? Why did the U.S. Supreme Court develop the “effects on interstate commerce” test? Is most commerce considered “interstate commerce” that can be regulated by the federal government?

Kingsfield establishes a subsidiary operation in a foreign country on January 1, 2017. The country’s currency is the kumquat (KQ). To start this business, Kingsfield invests 10,000 kumquats. Of this amount, it spends 3,000 kumquats immediately to acquire equipment. Later, on April 1, 2017, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. The U.S. dollar ($) exchange rates for the kumquat for 2017 follow:

As of December 31, 2017, the subsidiary reports the following trial balance:

A corporation based in East Lansing, Michigan, Kingsfield uses the U.S. dollar as its reporting currency.

Assume that the subsidiary’s functional currency is the kumquat. Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial statements can be prepared.

Assume that the subsidiary’s functional currency is the U.S. dollar. Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial statements can be prepared.

Assume that the subsidiary’s functional currency is the kumquat. Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial statements can be prepared.

Assume that the subsidiary’s functional currency is the U.S. dollar. Prepare a trial balance for it in U.S. dollars so that 2017 consolidated financial statements can be prepared.

Vaughn Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Vaughn and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,140 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,990 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Vaughn’s cash flow problems are due primarily to the company’s desire to finance a $301,430 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a)

Compute the following items for Vaughn Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

Martinez Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Martinez and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,170 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,020 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Martinez’s cash flow problems are due primarily to the company’s desire to finance a $300,530 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a)

Compute the following items for Martinez Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

Wildhorse Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Wildhorse and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,960 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,030 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Wildhorse’s cash flow problems are due primarily to the company’s desire to finance a $299,210 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a)

Compute the following items for Wildhorse Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)