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Should China revalue the yuan against the dollar? Why or why not? 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.
Suppose both governments offer their respective company a subsidy of $4(million). Which company will enter the market c. Suppose both governments offer their respective company a $10 million subsidy. Which company will enter the market d. Suppose the..
Jack and May are the only residents of a small island. Jack operates a paper-mill, and has expenses given by MPC = 10+2Q. Jack gets a value of $24 for each unit of paper he sells.
If the European slump also leads to a slowdown of the other economies that import goods from the United States, the effect could be larger. Assume that US exports decrease by 5% (as a result of changes in foreign output) in one year. What is the ..
A Company issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25 percent.
Steel is labor intensive and rice is land intensive. According to the long run Heckscher-Ohlin model what happens when these two countries move frome no trade to free trade? Wages in France's rice industry? Wages in France's steel industry?
Discuss the two main challenges of the international trading system and how have these concerns been negotiated among trading partners?
Consider two Countries that share the same technology, South Africa and the UK, and two goods, Diamonds and Tea
Use the table given below: Value in billions In each of following cases, indicate if GDP is affected, under what category and what happens to GDP.
Think that the following model of a small open economy, and Where X = exports, M = imports, e = the real exchange rate=50, Yf = foreign income = 2000.
If the European euro were to depreciate relative to the United State dollar in the foreign exchange market, would it be easier of harder for the French to sell their wine in the U.S.?
Assume that 2-people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and increase chickens.
India`s population is expected to overtake that of China within the next decade, what differences between these two nations could have contributed to this outcome? What are some of differences between the population policies of China and India?
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