Reference no: EM13181765
a) What are the reasons why the colonized region in latin america remained underdeveloped?
b) How/Why was the Great Depression considered an "imported crisis" for Latin America?
c) Under ISI policies, Latin America became one of the most protectionist regions in the world. What were some of the tactics of protectionism that they employed?
d) During the ISI period, interest rates were kept low to encourage investment. What were the two negative side effects of such a policy?
e) What are the external and domestic origins of the Debt Crisis in Latin America?
f) In 1987 Peru's debt could be purchased in the secondary market for 2 to 7 cents on the dollar. Why was it traded with such a big discount?
g) Why was the Brady plan more successful than the Baker plan?
h) What are the costs of inflation?
i) Elaborate on the statement: "Inflation is a monetary phenomena".
j) From the structuralists point of view, there are three key factors that allow inflation to rise. What are these three factors? Explain how they work.
k) In 1976 Mexico devalued its currency from 12.5 to 19.8 pesos per dollar. What are the effects of such devaluation on local consumers, investors, and on external debt? Who are the winners? (for the last question read the article on Moodle under ‘material')
l) Macroeconomic policy trilemma: During the 1970's, what were the two tools that Mexico was using? Under these policies, how can the government control the exchange rate?
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Recalculate the adjusted present value of the project
: chance that financial distress would result in a loss of 80% and 40%, respectively, of the project"s value. Recalculate the adjusted present value of the project.
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What is the strategic net present value
: What is the strategic net present value of this project if the cost of capital is 5% - Suppose that a project costs $1 million for each of the first five years. At the end of the fifth year,
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What is the static npv and what is the strategic npv
: If the cost of the capital is 15% by continuous compounding, the risk-free rate is 5% and the volatility is 0.3. What is the Static NPV and what is the Strategic NPV?
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What kind of financial information does it contain
: Is accrual basis superior to cash basis in meeting the economic decision-making needs of the users of financial statements? Why or why not?
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What were some of the tactics of protectionism employed
: What are the reasons why the colonized region in latin america remained underdeveloped? How/Why was the Great Depression considered an "imported crisis" for Latin America? Under ISI policies, Latin America became one of the most protectionist regio..
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Explain production possibilities frontier
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What was the firms end-of-year cash balance
: Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end ..
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What was its charge for depreciation and amortization
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What is the macrs depreciation in the 4rth year
: our company has purchased a large ne truck for over thr road use(asset class 0.26).it has s cost basis of $180,000.With additional options costing $15,000,the cost basis for depreciation purposes is $195,000.its ,MV at th end if five years is esti..
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