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Question: Consider a U.S. firm's production of automobiles, including research and development and component production.
a. Starting from a no-trade equilibrium in a PPF diagram, illustrate the gains from offshoring if the United States has a comparative advantage in component production.
b. Now suppose that advances in engineering abroad decrease the relative price of research and development. Illustrate this change on your diagram and state the implications for production in the United States.
c. Does the U.S. firm gain from advances in research and development abroad? Explain why or why not.
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Assume you executed a 90-day forward contract to exchange 100,000 Swiss francs into US dollars. How many dollars would you get 90 days hence.
Increased production levels in this industry during the first three quarters this year led industry experts to believe that the industry contribution to Indonesia's GDP would also increase.
Prepare a table/graph for inflation in "your country" (use North Korea for the country; if no data is available, use India) for about the latest ten year period for which you have data.
the marginal revenue curve of a monopoly crosses its marginal cost curve at 30 per unit and an output of 2 million
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A toy rocket is launched from a 3.5 m high platform in such a way that its height, h (in meters), after t seconds is given by the equation h=-4.9t + 23.8t +3.5. How long will it take for the rocket to hit the ground?
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