Offer a subsidy to a profitable and successful business, International Economics

Assignment Help:

Q. How could the U.S. government justify its decision to offer a subsidy to a profitable and successful business?

Answer: It could indicate that this $10 million pump-priming expenditure results in a profit of $110 million. If Boeing paid a subsidiary income tax of 20% this would net the government $55 million which is in excess of 5 times the original subsidy thus that the decision may be justified not only in terms of benefit/cost considerations however even in terms of pure budgetary terms.


Related Discussions:- Offer a subsidy to a profitable and successful business

Factors affecting the position of the aa schedule, Q. Discuss the m...

Q. Discuss the main factors affecting the position of the AA schedule. Answer: Revolutionize in the domestic money supply changes in the domestic price level changes in

Discuss effects of ongoing inflation based on ppp theory, Discuss the effec...

Discuss the effects of ongoing inflation based on the PPP theory. Answer:  Other things equivalent money supply growth at a constant rate eventually results in ongoing price le

Show temporarily monetary expansion, Q. Using a figure, show that under ful...

Q. Using a figure, show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run. Answer: A t

Existence of external economies of scale, (a) Consider there are two countr...

(a) Consider there are two countries (country 1 and country 2) with two goods (X and Y). Further, under the assumptions of the Ricardian model, country 1 specialise in goods X. De

Types of international transactions, Q. What types of international transa...

Q. What types of international transactions are recorded in the balance of payment accounts? Answer: Three kinds' transactions that involve exports and imports of goods and s

Study the effects of a change in market, Q. Use a figure to study the effec...

Q. Use a figure to study the effects of a change in market belief with regard to the fixed exchange rate, in particular assume market participants expect the government to devaluat

Why the fdic is following a too-big-to-fail policy, Q. Explain why the FDIC...

Q. Explain why the FDIC is following a "too-big-to-fail" policy of fully protecting all depositors at the largest banks. Answer: It is a tricky question the FDIC does that even

WTO - TRIPS, What are the benefit derived by Indian Corporates due to WTO -...

What are the benefit derived by Indian Corporates due to WTO - TRIPS?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd