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How do tariffs and quotas differ? Can you think of any reason why foreign producers might prefer a quota rather than a tariff? Explain your answer.
Explain the impact of external costs and external benefits on resource allocation and why are public goods not produced in sufficient quantities by private markets?
Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppose also that the interest rate on a one-year German bond is 7% and the interest rate on a one-year U.S. bond is 4%. Suppose that you expect the exchange rate in one yea..
How the New theories of International trade relate to the theory of comparative advantage (use a country of your choosing as the vehicle to explain your views) 200 words
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.
As in class, assume that the capital account is equal to zero, as are capital gains on external wealth. Using the notation we worked with in class and given the assumptions made in problem 2, state the "generic" account (that is, the current accou..
The elasticity of demand for a product is likely to be greater (Points : 2) the smaller the number of substitute products available. the smaller the proportion of one's income spent on the product
Is U.S. having trade deficits or trade surplus with Canada and Mexico Remember U.S. imports oil from both countries. Is U.S. demanding for more oil during the recession
Before one year Polish zloty was PLN 3.8000/USD. Since then the sloty has fallen 14 percent against the dollar. Price levels in the US have not changed, but Polish price has gone up 7 percent
An argument against additional disclosure is that financial analysts aggressively seek this information, which is then sold to their customers, resulting in an adequate market solution to the problem of providing timely and relevant information on se..
The US presently has a current account deficit with Japan. Determinje what would happen to the dollar or yen spot exchange rate and the current account deficit if there were a decrease in Japanese investment in the U.S.?
For decades, these countries had maintained a stable currency and enhanced their globalization efforts. Following this prosperous period, Thailand, South Korea, Indonesia, Malaysia, and the Philippines dropped to net outflows of U.S. $12.1 billion..
In Cozmetal labor unions are illegal, and anyone caught trying to organize the workforce of any commercial enterprise is flogged to death in the public square with a cat-o-nine-tails adorned with darning needles.
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