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Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Izodia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why?
Discuss the pros and cons of firms competing in global environment and how this has affected the United States economy and the global economy?
Why might you expect to see flat royalty payments in home based franchises but reveneue based royalities in franchises that operate from commerical building?
If we do engage in foreign trade, should we bound foreign trade to country's that engage in fair trade throgh giving us access to domestic markets and reciprocal import tariff decrease that mirror our tarriff reductions on our imports from them?
Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppose also that the interest rate on a one-year German bond is 7% and the interest rate on a one-year U.S. bond is 4%. Suppose that you expect the exchange rate in one yea..
Draw a graph of the U.S. automobile market in which the domestic equilibrium price without trade is Pd and the equilibrium quantity is Q d. Use this graph to illustrate and explain the effects of a tariff if the United States were an auto importe..
the joint probability distribution between employment status and college graduation among those either employed or looking for work (unemployed) in the working age U.S. population for 2008. Joint Distribution of Employment Status and College Gradua..
Many corporation manufacture more than one product. What is the motivation to do this and explain how do rules for profit maximization differ between a single product corporation and a multiproduct corporation?
What is the difference between Absolute and Relative PPP? Which theory requires fewer assumptions and give two reasons why Absolute PPP might not hold in the short-run.
Think the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income.
A Company issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25 percent.
Suppose the spot exchange rate in dollars and yen is e=$1/100yen. The interest rate on a 6 months dollar denominated assets is i($)=1 percent and interest rate on comparable 6 months yen denominated assets
Compute the equilibrium levels of B and G consumed and produced in the Home country under autarky. What is the corresponding value of p?
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