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If the U.S. dollar were to appreciate substantially, what steps could a domestic manufacturer like Cummins Engine Co of Columbus, Indiana, take in advance to reduce the effect of the exchange rate fluctuation on company profitability?
Assume that your shareholders have only United States stocks. Would you expect an overseas investment to have above or below-average risk for them?
What countries would you choose to export and what problems do you see, and why do they trouble you?
Based on your reading, which market structure is more applicable for the market for building commercial aircrafts, when there are two major manufacturers of the commercial airplanes and little possibility of entry by new firms:
Consider trade relations between the United States and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are as follows: United States' Decision Mexico's Decision Low Tariffs U.S. gains $25 billi..
The company is currently evaluating the merits of building a new plant in order to fulfill a new contract with the federal government. The alternative to expansion is to use additional overtime, reduce other production, or a combination of both.
Foreign direct investment (FDI) refers to investments in which the investor retains a long-term interest and some degree of control over the enterprise in which the investment takes place.
If the European slump also leads to a slowdown of the other economies that import goods from the United States, the effect could be larger. Assume that US exports decrease by 5% (as a result of changes in foreign output) in one year. What is the ..
The German Chancellor Merkel stated that Europe is facing the biggest difficulty since WW2. Why? Determine the nature of this trouble?
Microeconomics is suppose to be the study of scarce resources. Here, consumers [both individuals and organizations] must make allocation decisions. These 3-basic trade offs include which goods or services are to be manufactured,
In the 1970s, U.S. consumers transferred their deposits from accounts in banks and thrifts to money market mutual funds because money market mutual funds A) were more liquid B) were less risky C) paid higher interest rates D) were guaranteed for a ..
Assume that another region (country) enters the picture. Also, assume that this new country is as big as the U.S. and China and that it is experiencing an economic boom with high levels of imports and exports.
Suppose if you were chief economic advisor to the President at present, what are the 3-recommendations you would make to him to improve overall effectiveness of the economy?
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