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If Boeing's dollar aircraft prices increase 20% and the yen/dollar exchange rate declines 15%, what effective price increase is facing Japan Air Lines for teh purchase of Boeing 747? Would boeing's margin likely rise or fall if the yen then depreciated and competitor prices were unchanged? why?
Are there any similarities and differences between the principle of comparative advantage and absolute advantage?
Discuss how does Heckscher-Ohlin theory differ from Ricardian theory in describing international trade patterns? The theory shows how trade affects distribution of income within trading partners.
The table given below shows the values of two goods. Assume wheat is produced in the United State and coffee beans are produced in Kenya.
In the cruise industry, one third of reservations are booked from january to march. Explain and diagrammatically show how the disaster of the costa concordia off the coast of italy will affect the market for cruises.
"The theory of the second best leaves welfare economists 'high and dry' since not only does it abolish the established objectives of first-best situations,
The Internet has permitted for raised trade in services such as programming and technical support, a development that has reduced the prices of such services relative to manufactured goods.
b.If the United States imposed a price ceiling of $18 per barrel on the oil market, would there be an excess supply or an excess demand for oil How much c.Under the price ceiling, quantity supplied and quantity demanded differ. Which of the two wi..
Is it not right to use the total revenue test for elasticity, when there is a direct relationship in price and total revenue the demand is elastic?
Derive the export-supply curve of B for the B-exporting country as a function of p and derive the import-demand curve of B for the B-importing country as a function of p.
Imagine you are a manager at the DaimlerChrysler. Daimler Chrysler has lost money on Smart car since 1st model rolled off the assembly line in 1998.
What is the current GDP growth rate for the U.S. Examine the trend over the past few years. What trends interest you What stage of the Business Cycle would the U.S. economy be in currently given the trends.
A firm purchases capital and labour in competitive markets at prices of r=$6/machine-hour and w=$4/labour-hour,respectively. With the firm's current input mix, the marginal product of capital is 12kg/machine-hour and the margi..
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