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Question
a) According to the OLI paradigm, foreign direct investment is explained by three conditions (ownership advantages, location advantages and internalization). Examine the factors that influence firms to locate subsidiaries close to markets.
b) Managers of multinational enterprises are advised to take advantage of their home region institutions such as the European Union. Assume you are the manager of a multinational enterprise in Belgium. Why is the institutional framework created by the EU pivotal for business?
c) Identify firms' strategic responses that managers adopt in order to deal with foreign currency exchange rate movements.
Using linear interpolation, determine the value of (P/A, 61/2%, 10)from the compound interest tables. Compute this same value using the equation or a TVM.
Propose a regression model including the important explanatory variables that a business manager should use in estimating the demand for its product.
Discussion about the demand and supply conditions for your product(s) or service - discussion about the demand elasticity for your product
William Poole, president of the Federal Reserve Bank of St. Louis, recently suggested, "We may face more inflation pressure than currently shows up.
You' ve been hired as an economist to reconstruct the missing numbers by calculating for 2002: a. GDP. b. Corporate profits. c. Capital consumption allowance. Can anyone help me with this??
An investor willing to forgo FDIC insurance and unwilling to risk loss of principal could invest - Demand for liquidity means demand
Explain to him fully the profit-maximising/loss minimising rule within the context of a perfectly competitive market structure and how the profit-maximising/loss minimising rule may be applied under the three (3) scenarios viz. economic profit, norma..
Assume that the banking system has $200 billion in reserves. There are no excess reserves in the system. If the reserve requirement is decreased from 10 percent to 8 percent, what will happen to the level of excess reserves in the system
Owner/operators of small gas stations rarely pay themselves an hourly wage. How does this practice affect the economic cost of dispensing gasoline?
Describe why a rational person might be willing to pay money if he does not lose weight, and how this constitutes a commitment strategy.
Your grade in part will be a function of the economic arguments you present both against and for your position and your economic reasoning in support.
A firm manufactures two goods A and B which require the two inputs K and L in the following amounts.
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