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Internalization
1. Operate in domestic market only. (least productive)
2. Serve foreign markets through subsidiaries. (more productive by 15%)
3. Those that export overseas. (most productive by 40%)
Assume you hear a commentator on radio state that when interest rates fall, the stock market (the Dow Jones average say) tends to rise.
Suppose that with a given unit of labour, India can manufacture 40 basketball hoops or 60 basketballs and Nepal can manufacture 10 basketball hoops or 30 basketballs.
Microeconomics is suppose to be the study of scarce resources. Here, consumers [both individuals and organizations] must make allocation decisions. These 3-basic trade offs include which goods or services are to be manufactured,
For a world in which international trade would be according to the differences featured in the Heckscher-Ohlin theory, the shift from no trade to free trade is like a zero-sum game.
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.
The U.S. government's expansive role in public policy is caught in a swirl of conflicting cross-currents. On the one hand, popular expectations about government's responsibility to solve problems often exceed the capacity of state and local author..
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
Define NAFTA using the internet to gather some information about NAFTA and why and when it was started?
Martin Feldstein and Charles Horioka of Harvard University discusses that in a world of perfect capital market integration, there should be little long term correlation in domestic saving and investment.
The market for chicken sandwich, considered a normal good, is in equilibrium. Analyze the effect of the following events on equilibrium price and equilibrium quantity of chicken sandwich.
Give some example of a good the U.S. would be considered to have a comparative advantage in producing. Why do you think the United States has this comparative advantage?
The firm you work for is expanding its business and would like to start to trade with another nation.
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