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Consider the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income. Prove that leisure must be a normal good for the labor supply function to be downward sloping.
If we do engage in foreign trade, should we bound foreign trade to country's that engage in fair trade throgh giving us access to domestic markets and reciprocal import tariff decrease that mirror our tarriff reductions on our imports from them?
As a treasurer of a large United State corporation, you must decide how best to manage the company's cash flows to maximize profits, subject to maintaining an acceptable level of risk.
Differentiate the international financial companies that play major roles in NAFTA and Latin American Integration Association (ALADI) regional trading blocs.
Suppose that the corn production needs only land and can production requires only labor. The US can produce either seventy kilograms of corn or 100 cans in an hour.
Suppose if you were economic adviser to a nation that was following your advice about trade restrictions and that nation fell into a recession, would you change your advice?
Questions based on International Business
Suppose you are the Economic Advisor to the President of the U.S. Your task is to make a framework for economic policy and issues. During one of your briefing sessions in the White House,
Economists generally use Porter's 5-forces framework when making a qualitative evaluation of a company's strategic position. According to Porter, his model should be used at industry level,
Discuss and describe the difference between absolute advantage and comparative advantage. Determine the significance of each in international trade processes?
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
Describe the increasing returns to scale as a basis for international trade. Be sure that you discuss the relevant concepts, explain important features of such trade,
Does either country have absolute or comparative advantage in any item? Give support for your answer through computing the "resource costs" or opportunity costs for both products in both countries.
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