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The economic staff of the U.S. Department of the Treasury has been asked to recommend a new tax policy concerning the treatment of the foreign earnings of U.S. firms. Currently the foreign earnings of U.S. multinational companies are taxed only when the income is returned to the United States. Taxes are deferred if the income is reinvested abroad. The department seeks a tax rate that will maximize total tax revenue from foreign earnings. Find the optimal tax rate if:a. B(t) = 80 - 100tb. B(t) = 80 - 240t²c. B(t) = 80 - 80?twhere B(t) is the foreign earnings of U.S. multinational companies returned to the United States and t is the tax rate.
One type of toy bears is in China and exported to the United State A toy bear sells for sixteen Yen in China. The exchange rate of Chinese yen and US dollars is $1 = 8 Yen.
A monopolist with two plants operates with a marginal revenue of 500-4Q and marginal expenses of 4Q for plant one and 2Q for plant 2.
The problem of estimating what goods and services society should produce, Determine the models used in economics
Calculate the forward discount or Premium for the Mexican peso whose 90-day forward rate is $.102 and spot rate is $.10. State whether your answer is a discount or premium.
Many people say yes that government's role in free market economy should be limited, the degree of appropriate government involvement is contested.
Focusing on the production of a nation other than the US. Determine what is currently going on with the Canadian Automotive Industry and explain why is this important?
Determine whether Pugelovia is labor-abundant or capital abundant. If car production is capital-intensive and cloth is labor-intensive, what is the Heckscher-Ohlin prediction for the pattern of trade between Pugelovia and The Rest of the world?
The government collects $7 in taxes and spends $10 on locally-made goods. Firms borrow $7 and make $7 in domestic investment spending. The government and firms buy no imports what is Germany's current account balance?
Until the 25-century, Latin was the language used between the educated and within literature. Research and report on origins of vernacular language, and its spread.
Suppose the PRE government offers Exportian "stuff" producers an export subsidy of $3 per unit. In addition, the government imposes a tariff of $3 per unit on imports of "stuff". Calculate the price paid and quantity demanded by Exportian consumer..
Its the spring of 2002. You are an economist on President Bush's council of economic advisors. Congress is considering legislation, called the "2002 Farm Bill," that would increase subsidies to US farmers.
Research the international business activities controlled in one specific emerging market through a well known multinational firm or a multinational organization you know well.
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