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The economic staff of the U.S. Department of the Treasury has been asked to recommend a new tax policy concerning the treatment of the foreign earnings of U.S. firms. Currently the foreign earnings of U.S. multinational companies are taxed only when the income is returned to the United States. Taxes are deferred if the income is reinvested abroad. The department seeks a tax rate that will maximize total tax revenue from foreign earnings. Find the optimal tax rate if:a. B(t) = 80 - 100tb. B(t) = 80 - 240t²c. B(t) = 80 - 80?twhere B(t) is the foreign earnings of U.S. multinational companies returned to the United States and t is the tax rate.
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
1- What are the limits of the terms of trade Specifically, when is Canada willing to trade with Japan, and when is Japan willing to trade with Canada 2- Which country has the absolute advantage in beef production 3- Which country has the absolute a..
A country has domestic investment of $100 billion. Its citizens purchase $500 of foreign assets and foreign citizens purchase $300 of its assets. What is national saving
Discuss some of the reasons why international trade is more difficult and risky from the exporter’s perspective than is domestic trade.
introduction to the global economy and theories of trade.1. clearly explain any five linkages that connect todays
in US, gas cost 2.5 per gallon. in italy, gas cost 6 per gallon. what effect dose this price differential likely have on a.the size of cars in us and italy b. the use of public transportation the us and italy c.the fuel efficiency of cars in the us ..
a. in trip calculation it is observed that a wal-mart store driver successfully made a total of 104 trips in a
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrasting the economic fluctuation the United States has experiences from 1990 to current date.
Some politicians have suggested that the U.S. enact a constitutional amendment requiring that the federal govt balance its budget annually. Explain why such an amendment, if strickly enforced, would force the govt to enact a contractionary fiscal ..
Discuss and critically evaluate this statement with reference to the theory and empirical evidence relating to the "law of one price" and the theory of purchasing power parity (PPP).
A recent Hal Varian commentary in the New York Times focused on the role of technological knowledge in explaining the different productivity experiences of Europe and the United States. Compared to Europe, the United States experienced much strong..
greener grass company ggc competes with its main rival better lawns and gardens blg in the supply and installation of
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