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1. For each cases a) and b), specify whether the foreign direct investment is horizontal or vertical; in addition, describe whether that investment represents an FDI inflow or outflow from the countries that are mentioned.
a) McDonald's (a US multinational) opens up and operates new restaurants in Europe.
b) Total (a French oil multinational) buys ownership and exploration rights to oil fields in Cameroon.
c) What would the examples above imply for the extent of intra-firm trade. That is, in what industries would a greater proportion of trade occur within firms?
2. If there are internal economies of scale, why would it ever make sense for a firm to produce the same good in more than one production facility?
The car company pays 40,000 to the steel company to buy the steel and pays its workers 40,000 to make the cars, which were then sold to consumers for 120,000. Using the production gof final goods approach, how much is the GDP in this economy?
An exogenous event has left the interest rate in a position above the LM curve. Describe the disequilibrium in the financial market. In which direction should you expect the interest rate to change?
Examine the major factors relative to the omission by the client that would result in a criminal investigation, rather than a civil fraud proposal by the IRS.
Explain Lorenz curve and apply to unequal distribution of income where the top 1% of income earners have disproportional of income. What percent of income is earned by the lowest 20% of the population?
Describe the changes in the model parameter(s) and resulting changes if any in the hiring decisions of the three types of firms.
Think of a real-life example of a profit corporation or small business with which you are familiar.
Jen, Eric, and Kurt are all buyers of chain saws. Jen’s demand function is DJ (p) = 520 − 13p, Eric’s demand function is DE(p) = 40 − p, and Kurt’s demand function is DK(p) = 200 − 5p. Together, these three constitute the entire demand for chain saws..
q1. consider and economy with output equal to the natural level of output. now assume there is an increase in
A local cell phone monopoly faces the following monthly inverse-demand for lines from a typical family: P = 100 – 20Q. The total cost to the monopoly is C(Q) = 20Q. This implies that the marginal monthly cost to the monopoly is $20 per line.
The majority of the world's diamonds comes from Country A and Country B. Suppose that the marginal cost of mining a diamond is $1,000 per diamond and that the demand schedule for diamonds is as follow there is moreshow problemThe majority of the worl..
Research another example of a reimbursement-related contract dispute between the U.S. government and a contractor. Then create a short case study report, including the following topics: A summary of the reason for and nature of the contract.
Ilustrate what is the market price and level of each firm's output in the short run. How much profit does each firm make.
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