Explain why a stronger dollar could enlarge the us balance

Assignment Help Finance Basics
Reference no: EM131305633

1. How would a relatively high home inflation rate affect the home country's current account, other things being equal?

2. Is a negative current account harmful to a country? Discuss.

3. Explain why a stronger dollar could enlarge the US balance of trade deficit.

4. Explain why a weaker dollar could affect the US balance of trade deficit.

5. Explain how the following transaction generates two entries (a credit and a debit) in the U.S. balance of payments accounts, and describe how each entry would be classified:

A U.S. resident buys a typewriter from the Italian company and pays with a $300 check.

6. Suppose that the price elasticity of demand for exports is equal to -0.50 and the price elasticity of demand for imports is equal to -0.35. Explain whether the Marshall-Lerner condition (MLC) is satisfied or not satisfied, and then explain the implication of being satisfied or not satisfied on the current account position.

7. This question concerns the J-curve effect. In the figure below, explain the J-curve effect and whether or not the figure provides evidence supporting the J-curve effect.

894_Figure.png

Reference no: EM131305633

Questions Cloud

How would you identify best nut factor for your application : How much torque would be required to tighten an ASTM A193 Gr. B16 bolt with a 31/4-8 thread to 60% of yield? Why does a wrench create a side load on the bolt being tightened?
Describe the approaches to the sdlc : Analyze each reason listed above as a reason for a diversity of approaches to software construction and modeling, and give your opinion on whether or not each reason is valid.Propose at least one (1) additional reason why you believe such diversit..
What do we mean by the term torque reaction : A right angle nut runner is used to produce 500 ft-lb of torque on a bolt having a 7/8 -9 UNC thread. The tool is 18 in. long. How much reaction force, created by the reaction torque, will the operator feel? Is this a practical situation?
Estimate average length of firms short term operating cycle : Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts?
Explain why a stronger dollar could enlarge the us balance : How would a relatively high home inflation rate affect the home country's current account, other things being equal? Is a negative current account harmful to a country? Discuss. Explain why a stronger dollar could enlarge the US balance of trade defi..
How much preload will that create in the bolt : Is that an acceptable preload? Describe the typical torque-turn tightening process as described by an S-shaped torque- turn curve.
What happens to a farmer when irrigation water dries up : Explain the analogy relating irrigation flows to flows of funds in the financial system.- What happens to a farmer when irrigation water dries up?
Describe turn-of-nut procedure used in structural steel work : Describe the turn-of-nut procedure used in structural steel work ? Why does the structural steel turn-of-nut process create preload more accurately than does a torquing procedure?
Difference between direct finance and indirect finance : What is the difference between direct finance and indirect finance? Which involves financial intermediaries, and which involves financial markets?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the value of your investment in stock a

You own a $222,000,000 portfolio that is invested in Stocks A and B. The portfolio beta is equal to the market beta. Stock A has an expected return of 18.7 percent and has a beta of 1.42. Stock B has a beta of 0.88. What is the value of your inves..

  Sale of a new sound board used in recording studios

Herrera Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $25,500, and the company expects to sell 1,400 per year. The company currently sells 1,900 units of its existing model per y..

  Explain whether the price change is due to supply or demand

Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the i..

  Assignment on financial analysis

Use the Internet to research one (1) publicly traded company and review its last annual report. Use an investor's view to perform financial analysis and discuss various non-financial factors impacting investment decision.

  Using the above assets from the model portfolio and their

roger has just been hired as chief portfolio officer of bear united capital.as part of this new position he has been

  Record the transactions in the books of prime entry.

Record the transactions in the books of prime entry. Transfer those entries to the ledger accounts.Prepare the trial balance.

  Equity transactions and statement preparation

Record the journal entries for the transactions listed above. Prepare the stockholders' equity section of Mackeys Corporation's balance sheet as of December 31, 2010. Please explain how "Retained Earnings-Preferred Dividends" is calculated.

  What should be the hedge ratio

Verify your answer using the risk-neutral approach-do not just say that you have the same answer; you will need to show the work that the two approaches give the same answer.

  How much money do you have in the account

You just won $25,000 in the lottery. You decide you want to buy a sportscar. You don't want to buy the car now but want to wait for 5 years when you will be 25 and your insurance premiums will be affordable. You think you can earn 8% on the mo..

  Bakery has annual fixed costs of 880000 annd a variable

bakery has annual fixed costs of 880000 annd a variable cost per pie of 7.50. each pie sells for 15.50 the bakery

  Which bond should the investor select

One is a corporate bond carrying an 8 percent coupon and selling at par. The other is a municipal bond with a 5½ percent coupon, and it, too, sells at par. Assuming all other relevant factors are equal, which bond should the investor select?

  Should foreign subsidiary mne conform to capital structure

Should foreign subsidiaries of MNEs conform to the capital structure norms of the host country or to the norms of their parents country? Discuss.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd