Reference no: EM131162908
In the Park Test, one of the major difficulties is choosing a proportionality factor (Z). In each of the following equations, seperate the listed explanatory variables into those that are likely or unlikely to be proportionality factors.
a. The # of econ majors in a cross section of various-sized colleges and universities as a function of the number of undergraduates attending a school, the # of required courses in that school's econ major, the average GPA in the major, and the # of economics professors there.
b. GDP in a cross section of various countries as a function of the aggregate gross investment in a nation, the % growth of its money supply, the maximum marginal tax rate on capital gains there, and its population.
c. The demand for carrots in a time-series model of the US as a function of the real price of carrots, US per capita disposable income, population, the % error in carrot sales measurement, and the real price of celery.
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Positive impacts or negative impacts on host country
: There are several studies that have attempted to empirically investigate how these theoretical channels may affect a host country. What are the conclusions of these studies? Were there mostly positive impacts or negative impacts on a host country? Ex..
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Change host country institutions incidences instead
: Kwok and Tadesse (2006) indicate that MNCs act as an agent to change a host country’s institutions and therefore help to lower incidences of corruption. Explain why MNCs often attempt to change host country institutions incidences instead of just pay..
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What do you think is the future of these types of MNCs
: State owned, at least partly, MNCs are becoming common specially those from BRICS countries. What do you think is the future of these types of MNCs? Do they will over the traditional (privately held) MNCs? Explain.
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Decline in corporate tax revenue of advanced countries
: One of the major problems associated with MNCs is a decline in corporate tax revenue of advanced countries since the 1990s. What should host and home countries do to solve this problem?
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Major difficulties is choosing proportionality factor
: In the Park Test, one of the major difficulties is choosing a proportionality factor (Z). In each of the following equations, seperate the listed explanatory variables into those that are likely or unlikely to be proportionality factors.
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Favor and against expansions of Foreign Direct Investment
: Reasons in favor and against expansions of Foreign Direct Investment (FDI) by Multinational Corporations (MNCs).
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How does an outflow of FDI benefit a home country
: How does an outflow of FDI benefit a home country? Take the case of an outflow of FDI/MNCs from the US and explain at least four benefits that the US expects from its overseas investments/investors.
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Transfer pricing is one of the methods
: Transfer pricing is one of the methods that MNCs use to move money around the world. This practice is still legal, but has been creating major problem in the world. Explain the problem and discuss how you would go about solving this problem.
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Interpret your value for the elasticity of demand
: When cantaloupes at a farm stand cost p dollars each, q cantaloupes are sold, where p and q are related by the formula q2+4pq+p2=19. Find a formula for the price of elasticity of demand for the farm stand cantaloupes. If p=2, is the demand elastic, i..
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