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Assume that a less developed country called LDC encourages direct foreign investment (DFI) in order to reduce its unemployment rate, currently at 15 percent. Also assume that several MNCs are likely to consider DFI in this country. The inflation rate in recent years has averaged 4 percent. The hourly wage in LDC for manufacturing work is the equivalent of about $5 per hour. When Piedmont Co. develops cash flow forecasts to perform a capital budgeting analysis for a project in LDC, it assumes a wage rate of $5 in Year 1 and applies a 4 percent increase for each of the next 10 years. The components produced are to be exported to Piedmont's headquarters in the United States, where they will be used in the production of computers. Do you think Piedmont will overestimate or underestimate the net present value of this project? Why?
Discuss at least 3 reasons why and how workers become unemployed (be specific about causes), and also cite 3 reasons unemployed workers finally land new jobs or get rehired.
If salary in the private organization are set equal to the value of the marginal product, how much will they rise yearly.
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
Describe unemployment and the unemployment rate. Might we be able to say "Job Stats: Too Good to be True?"
Compute the marginal cost in the given case. Illustrate what is the marginal cost with 8 workers to two decimal places.
Utilize the information to predict the yearly number of VCR's sold under the following conditions.
Depends on the data above, describe why public health officials generally advocate the use of cigarette taxes to reduce teenage smoking.
Consider the following situations. Evaluate how they would affect the level of productivity of labour.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.
Explain how does the Central Bank measure the money supply in the contary. Does the Central Bank have an interest rate policy.
Looking to raise profitability in perfectly competitive marketplace. How to efficiently plan production?
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
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