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In 2006 the hourly cost to workers per German industrial employee was $33. The hourly expense to employers per United States industrial employee was $23.65 while the average cost per Taiwanese industrial worker was $6.38. a. Give three reasons why firms produce in Germany rather than in a lower-wage country. b. Germany has just entered into an agreement with other EU countries that allows people in any EU country, including Greece and Italy, which have lower wage rates, to travel and work in any EU country, including high-wage countries. Would you expect a significant movement of employees from Greece and Italy to Germany right away? Why or why not? c. Workers in Thailand are paid significantly less than workers in Thailand. If you were a company CEO, what other information would you want before you decided where to establish a new production facility?
Select a United State multinational corporation. In terms of currency denomination, how the firm prices its revenues and costs.
Assume that nominal interest rate on 3-month Treasury bills is 8 percent in the United States and 6 percent in the U.K., and the rate of inflation is 10% in the United States and 4% in the U.K.
Global marketing managers must understand economics and trade rules of countries and regions within which they trade.
One year ago, a United State investor converted dollars to yen and purchased one hundred shares of stock in a Japanese company at a price of 3,150 yen a share.
Describe some models that forecast the effect that reducing protection Tariffs will have on factor prices Labour and capital.
Assume that following two programes take place in the market for Kuwait's currency, the dinar; The United States demand for oil, Kuwait's main export good,
Suppose you have been assigned the task of making the process for the selection, establishment and facilitation and evaluation parameters for a global team that will consist of a representing member from every nation VRI currently does business.
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has make decision to increase his business into the Czech Republic.
Decko Corporation is a United State firm with a Chinese subsidiary that produces cell phones in China and sells them in Japan. This subsidiary pays its wages and its rent in Chinese yuan,
Discuss why are manufacturers’ new orders, nondefense capital goods, an appropriate leading indicator and explain w hy is the index of industrial production an appropriate coincident indicator?
Martin Feldstein and Charles Horioka of Harvard University discusses that in a world of perfect capital market integration, there should be little long term correlation in domestic saving and investment.
My income is $300 a month, the price of good X is $4, and value of good Y is also $4. Given these prices & income, I purchase 50 units of X and 25 units of Y.
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