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1. For each cases a) and b), specify whether the foreign direct investment is horizontal or vertical; in addition, describe whether that investment represents an FDI inflow or outflow from the countries that are mentioned.
a) McDonald's (a US multinational) opens up and operates new restaurants in Europe.
b) Total (a French oil multinational) buys ownership and exploration rights to oil fields in Cameroon.
c) Volkswagen opens some new dealerships in the United States (note that VW doesn't produce any cars in the US)
d) Nestlé builds a new production factory in Bulgaria to produce Kit Kat chocolate bars (Kit Kat bars are produced by Nestlé in 17 different countries)
Explain how does the economist's use of the term rent differ from everyday usage.
Draw a real expenditures curve on a graph showing a recessionary gap. Explain what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this s..
Discuss the likely sources of the economies of scale that underlie the large size of these firms. [Note: the stocks of private firms are not traded on public stock exchanges
starting salaries of economics majors have a mean of 47000year with a standard deviation of 8000. what is the
Explain how would you respond to this question. Explain how might the bank tie in the concept of utility maximization into the campaign.
"When analyzing demand and supply, it is important todistinguish between the short run and the long run. In other words,if we ask how much demand or supply changes in response to a changein price
How many major wireless phone handset manufacturers are there? What is the market structure? What pricing strategies do wireless phone handset manufacturers use?
Where the independent variables are respectively: P, price of McBurger’s burgers, PC, price of competitors' burgers, Y, per capita income, and A, McBurger’s advertising budget.You observe that competitors have, on average, priced their burgers at $3...
Knowing this in advance, buyers will be unwilling to pay more than P = MC to begin with. How could such a monopolist escape this trap?
Consider the following data on US GDP-What was the grwoth rate of the GDP deflator between 1999 and 2000?
- suppose someone tells you that over time free trade is helping capitalists and harming workers. what fact would you
1. If there are 50 observations in a sample, how many degrees of freedom are there? (The context here is for finding a t value when constructing a confidence interval or testing a hypothesis for the pupoulation mean)
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