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In 2006 the hourly cost to workers per German industrial employee was $33. The hourly expense to employers per United States industrial employee was $23.65 while the average cost per Taiwanese industrial worker was $6.38. a. Give three reasons why firms produce in Germany rather than in a lower-wage country. b. Germany has just entered into an agreement with other EU countries that allows people in any EU country, including Greece and Italy, which have lower wage rates, to travel and work in any EU country, including high-wage countries. Would you expect a significant movement of employees from Greece and Italy to Germany right away? Why or why not? c. Workers in Thailand are paid significantly less than workers in Thailand. If you were a company CEO, what other information would you want before you decided where to establish a new production facility?
My income is $300 a month, the price of good X is $4, and value of good Y is also $4. Given these prices & income, I purchase 50 units of X and 25 units of Y.
In September 2003, a United State retailer wants to buy canola oil from a Canadian farm. At that time in Canada, one barrel of canola oil value C$2.
Provide some example of an event or incident that has taken place in the United State economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster,
Discuss the role of financial systems in promoting economic development and define microfinance? Discuss in detail its potentials and limitations for reducing poverty and spurring grassroots development in LDC?
Think the yearly budget deficit in the U.S. versus GDP, How does this compare to other industrial economies? What is your opinion on this relationship of budget deficit to GDP?
The world economy retrenched in wake of a global financial crisis. Did globalization of capital markets contribute to this crisis? If so, what can be done to stop global financial contagion in future?
Determine which of the following transactions would contribute to a United State current account surplus and why? Make sure that you justify, in every case, explain why the transaction would or would not contribute to a current account surplus.
JetSet Travel, has been hugely successful in the distribution of stylish, comfortable shoes for travel. JTI sells its items to approximately 4000 retail accounts in the U.S. and a mix of independent distributors,
Two firms, firm A and firm B, are deciding whether each should implement a new pricing strategy, which may or may not result in a value war.
Our economy thrives on competition. Market forces will lead companies to manufacture the mix of goods most desired. Unforeseen events can be responded to in a rational manner.
Assume Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, market for four wheel drive tractors consisted of 5-company's.
The consumption function is given by C = 200 + 0.75(Y - T ). The investment function is I = 200 - 25r, r is the real interest rate. Government buy and taxes are both 100.
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