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You are the manager of a small U.S. firm that sells nails in a competitive U,S. market (the nails you sell are a standardized commodity; store view your nails as identical to those available from hundreds of other firms). You are concerned about two events you recently learned about though trade publications:
(1) the overall market supply of nails will decrease by 2 percent, due to exit by foreign competitors;
(2) due to growing U.S. economy, the overall market demand for nails will increase by 2 percent. Based on this information should you plan to increase or decrease your production on nails? Explain.
Describe the increasing returns to scale as a basis for international trade. Be sure that you discuss the relevant concepts, explain important features of such trade,
Would this increase or reduce the gains to Canadian consumers? Use a graph to illustrate.
The world economy retrenched in wake of a global financial crisis. Did globalization of capital markets contribute to this crisis? If so, what can be done to stop global financial contagion in future?
A U.S. exporter sell $1 million worth of goods to a English importer in May. The export sales contract is drawn up in dollars at the May spot rate of £1=$1.750. Payment (in dollars) is to be made six months after the date of the contract, when the..
Internalization - Operate in domestic market only and serve foreign markets through subsidiaries
Stiglitz also argues that the IMF as another agenda besides its stated agenda of promoting stability and growth in LDCs. What does he mean by this? What, according to Stiglitz is the IMF's other agenda?
Define NAFTA using the internet to gather some information about NAFTA and why and when it was started?
Explain the concept of comparative advantage and the principle theories of why trade occurs and analyze and discuss the sources of comparative advantage in national economies.
Mr. and Mrs. Smith have enjoyed sailing small boats since they were seven years old. They wish to begin a firm to produce small sailboats.
If the European euro were to depreciate relative to the United State dollar in the foreign exchange market, would it be easier of harder for the French to sell their wine in the U.S.?
Adele Corporation is planning the replacement of some electric generating equipment by a more efficient, technologically advanced model.
Use a graph of the pollution abatement market, model a condition in which allocatively efficient level of abatement occurs at 100%, or equivalently where pollution is zero
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