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In the United States, labor supply tends to be inelastic relative to labor demand, and according to law, payroll taxes are essentially assessed evenly between workers and firms. Given the above situation, are workers or firms more likely to bear the additional burden of an increased payroll tax in the United States? Could this burden be shifted to the firms by assessing the increase in payroll tax on just firms rather than having firms and workers continue to be assessed payroll taxes equally?
Draw the production possibility frontier for the Home country with cloth on the horizontal axis and food on the vertical axis. Suppose the economy is engaged in free trade and the free trade relative price of cloth is given.
The government institutes a tariff of 100. The drives the terms of trade price down to 120. Compared to free trade, what happens to total surplus when the tariff is put into place?
What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
Assume the value of the French Franc in terms of dollar is 50 on October 12 , and 44 on October 17. Determine the Franc appreciated or depreciated against the dollar?
Suppose you are the Prime Minister of India and your country is experiencing a widespread famine. As a humanitarian response to the crisis, the US Congress enacts the following incentive programs; (1) The US government will impose a temporary lega..
If so, describe what impact this might have on (1) U.S. balance of payments, (2) Chinese balance of payments, (3) relative competitiveness of Mexico and Thailand, (4) firms such as Wal-Mart, and (5) U.S. and Chinese retail consumers.
You're an advisor to a newly elected President of a developing nation. This nation is under heavy corruption problems. What are some policies that the president can run to help fight this corrpution. The president himself isn't corrupt.
explain how Alternative Trade: Legacies for the Future supports or challenges your conceptualizations of trade and development. Are there themes that some of you agree upon? Do you disagree on others? Describe your conversation.
Illustrate your answer by an appropriate diagram, applying your knowledge of the Specific-Factors model.
Determine the disadvantages of forming corporate joint ventures between multinational corporations in the home and host country? Describe the theory of optimum currency areas, for example, the European economic community.
Kellogg's, breakfast food people, comprises one of four corporations that control about 92% of its market for breakfast food. Kellogg's would be considered;
When the Euro was 1st issued it hit the market at $1.17/ on 1 Jan 2001. Calculate the Euro price of the dollar when the Euro debuted?
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