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If the U.S. dollar were to appreciate substantially, what steps could a domestic manufacturer like Cummins Engine Co of Columbus, Indiana, take in advance to reduce the effect of the exchange rate fluctuation on company profitability?
Determine the pros and cons of a company that competes in a global environment and how do you think this has affected United States economy and global economy?
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..
Assume foreign income rise to 108,000 and interest rate is allowed to temporarily diverge from world economy interest costs. What are the equations for IS and LM curves?
An article written immediately after re election of George W. Bush referred to his environmental rule system where power plants purchase and sell the right to pollute in form of emission credits,
Assume the free trade market price of a car is $10,000. It contains $5000 worth of steel. The importing country imposes 25 percent tariff on car imports.
Two firms, firm A and firm B, are deciding whether each should implement a new pricing strategy, which may or may not result in a value war.
Analyze and describe the impact of the different forms of regional trading arrangements on international trade.
On Friday, New York foreign currency market closed with a quote of $1.0900 per Euro. To stimulate economic activity the Federal Reserve hints that interest rates will be lowered by fifty basis points
Assume that the Bank of Canada decides to expand money supply. Explain why would it be counter productive for the Bank of Canada to fix the value of the exchange rate?
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.
When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." What is the implied price elasticity of demand by foreigners for a British education is (in absolu..
Bush called for the United States to reduce its gasoline consumption by 20% in the next decade. He proposed an increase in ethanol produced from corn and the stalks and leaves from corn and other grasses. What is the likely impact of these two eve..
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