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A black market is:
a)Something that happens when producers sell goods for a greater price than the government mandated price ceiling.
b)A characteristic of a surplus or excess supply condition.
c)Legal but frowned upon by economists who feel it violates consumer sovereignty.
d)None of the above.
The marginal rate of substitution:
a)Is constant at all points on the budget line.
b)Increases in absolute value as one moves southeast along an indifference curve.
c)Decreases in absolute value as one moves southeast along an indifference curve.
d)May increase or decrease in absolute value as one moves southeast along an indifference curve, depending upon whether the substitution or income effect is dominant.
As the United State dollar appreciates in value relative to the Japanese Yen, what happens to the price of United State goods in Japan? What happens to the price of Japanese goods in United State?
Questions based on International Business
Sydney is wants to start a new business, but would have to give up a job with a total compensation of $100,000 every year. After researching the new business opportunity, Syndey created following estimates.
Authorized and available shares Aspin Company charter authorizes issuance of 2,000,000 shares of common stock. Currently, 1,400,000 shares are outstanding and 100,000 shares are being held as treasury stock.
n the flexible exchange rate system, discuss the effects of the following events on the exchange rate between U.S. dollar and Japanese Yen: Please indicate whether US$ will appreciate or depreciate.
Global marketing managers must understand economics and trade rules of countries and regions within which they trade.
Calculate the value of the Intraindustry Trade
Burger King Beefs Up Global Operations
In September 2003, a United State retailer wants to buy canola oil from a Canadian farm. At that time in Canada, one barrel of canola oil value C$2.
Discuss how do government bureaus differ from private firms and explain why is there good reason to believe that bureaucrats will seek to supply more than efficient level of their output in any year?
The consumption function is given by C = 200 + 0.75(Y - T ). The investment function is I = 200 - 25r, r is the real interest rate. Government buy and taxes are both 100.
Calculate the forward discount or Premium for the Mexican peso whose 90-day forward rate is $.102 and spot rate is $.10. State whether your answer is a discount or premium.
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