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The economic staff of the U.S. Department of the Treasury has been asked to recommend a new tax policy concerning the treatment of the foreign earnings of U.S. firms. Currently the foreign earnings of U.S. multinational companies are taxed only when the income is returned to the United States. Taxes are deferred if the income is reinvested abroad. The department seeks a tax rate that will maximize total tax revenue from foreign earnings. Find the optimal tax rate if:a. B(t) = 80 - 100tb. B(t) = 80 - 240t²c. B(t) = 80 - 80?twhere B(t) is the foreign earnings of U.S. multinational companies returned to the United States and t is the tax rate.
The problem of estimating what goods and services society should produce, Determine the models used in economics
Describe why the United States would subsidize short run cost of production for tobacco farmers in foreign nations. Do these practices guarantee the tobacco farmers a profit in short run?
Does the case distinguish between long-run and short-run profits and does the case distinguish between long-run and short-run production costs?
Discuss and critically evaluate this statement with reference to the theory and empirical evidence relating to the "law of one price" and the theory of purchasing power parity (PPP).
Choose a nation with international trade activities. Discuss the comparative advantage that would exist when selected nation has a margin of superiority.
The health care industry desires to get bigger and that its only option is a merger. Now the industry is confronted with the government regulations to oversee merger.
Suppose you are a fixed income fund manager based in euroland. Expected return of the EUR bond market is 4.4 percent and risk 5 percent, expected hedged return of the United Kingdom bond market 5.5% and risk 5.5 percent.
According to Jeffrey Sachs, Determine what kinds of development assistance can make a difference in Africa, and what role does he anticipate for the developed world?
Demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation.
Corporation A, a low rated company, desires a fixed-rate, long term loan. A currently has access to floating interest rate amount at a margin of 1.5 percent over LIBOR.
Assume that 2-people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and increase chickens.
Choose the share NYSE:WMT. Take +1,000 observations and answer the following questions does the price series have a unit root?
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