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The prime minister of your chosen country feels that local infant industries must be protected through the use of trade restrictions. She believes that your product is part of an industry in which companies within her country should be given an advantage. More specifically, she will use her influence to provide tax breaks and additional subsidies to businesses originating within this foreign country within your industry. You must provide the prime minister the following:
1. Reasons why this is not in this foreign country’s long-term interests
2. Reason to believe that both horizontal and vertical FDI of your product in this country will be viable for your chosen country
3. Compelling argument of why FDI is better than licensing for both your company and the country you are investing in
4. The geographic advantages to your CEO regarding investing in FDI related to this product in your chosen foreign country
If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.
Assume that 4-year Treasury Bonds currently have a nominal yield of 6.2%, and 4-year Corporate Bonds have a nominal yield of 8.5%. Further assume that Maturity Risk Premium (MRP) on all 4-year contracts currently is 1.3%, and Corporate Bonds currentl..
People often argue that economic rewards in society should be meritocratic, that is, that everyone should have an equal opportunity to get ahead and those that do succeed because of their greater ability, hard work, and so on, should then be allowed ..
It is often said that Animal Farm is a book describing why the economic system of communism failed in a story tale manner. However, after reading it, it seems to be a book that criticizes the totalitarian state that Stalin (Napoleon), had created aft..
There are two ways for money to be initially deposited into the banking system.
Suppose short-run output exceeds full potential output by 3 percent. According to Okun's law, what is the effect on unemployment? Assuming that inflationary expectations are constant, what is the effect on wages?
Have you thought about starting your own business? What opportunities seem attractive? What type of financial resources and personal skills would you need to launch a new business? How would you obtain these financial skills and personal resources?
A house costing $100,000 can be financed with two alternatives: A. $80,000, 15 yr, 11.5%, 1pt. B. $90,000, 20 yr, 12%, 2pts. If the house will be sold in 18 years, use the Incremental borrowing cost to find a. real cost of additional $10,000 loan pro..
elucidate why not and propose a mechanism that might solve your dilemma.
Illustrate at what output level would the monopolist produce. Illustrate at what output level would a perfectly competitive firm produce.
When you double the amount of workers (inputs) you hire, and your factory’s production (output) quadruples, then you are experiencing:
In this discussion, you will compare and contrast monetary and fiscal policies. Consider two recent national crisis points: 9/11 and the banking failures of 2008. Was fiscal or monetary policy more immediately responsive to each crisis? Why? Was fisc..
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