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We are constantly hearing about the mass exodus of jobs to other countries (phone service, computer service, sales). Use the concept of comparative advantage to explain why this is occurring. Also, explain how the U.S. benefits more in the long run from this shift. What sectors are harmed by the shift? What sectors benefit? Are there jobs likely to be created in the U.S. from this? Where? Why? Do you feel we should become protectionist and prevent this loss of jobs?
Based on the Keynesian theory in does it matter what the money is spent on? discuss and explain the amount of stimulative effect we can expect, depending on how the stimulus is financed.
The brain drain problem in the developing countries refers to the fact the best-educated workers and mainstream view of macro instability
A European Call Option on a non dividend paying stock where the stock price is $40, strike price is $40, the risk free rate is 4 percent per year, the volatility is 30 percent per year,
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..
Adele Corporation is planning the replacement of some electric generating equipment by a more efficient, technologically advanced model.
Suppose the dollar exchange rates of the euro and the yen are equally variable. The euro, however, tends to depreciate unexpectedly against the dollar when the return on the rest of your wealth is unexpectedly high, while the yen tends to apprecia..
"Real wages for Mexican industrial workers declined 13.5% since 1994." "Over 500,000 U.S. employees have lost their jobs after their companies moved to Mexico." "Mexico has lost over 1 million farming jobs."
The G-20 give a statement Saturday indicating developing country we unlikely to back off their demands that developed country's do away with subsides and tariff barriers from their farm items.
A farmer and a rancher currently lead a subsistence existence, manufacturing only meat and potatoes. The farmer could make two units of meat per forty hour week,
Suppose that U.S. prices rise 4% over the next year while prices in Mexico rise 6%. According to the purchasing power parity theory of exchange rates, what should happen to the exchange rate between the dollar and the peso
a. Why would it be counterproductive for the Bank of Canada to fix the value of the exchange rate b. What is the effect of this policy on the interest rate in the long run How do you know
Use the information in the table on labor productivities in France and Germany to answer the following question Output per Hour Worked France: cheese is 1 kilogram, cars is 0.25 car Germany: cheese is 2 kilograms, cars is 2 cars a. Which country has ..
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