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The Clean Air Act instituted trades between states for SO2 emissions. Several utility companies across geographic borders have engaged in such trades in recent years. Consider a trade between a utility in Wisconsin and the TVA in Tennessee. Assume that the trade reduces Wisconsin electricity consumers' bills by a total of $ 1 million, and lowers Tennessee electricity consumers' bills by $ 500,000. Also assume that the trade improves local environmental quality in Wisconsin by an amount that people value at $ 2 million. If the local environmental quality in Tennessee declines as a result of this trade, then indicate a potential Coase agreement that could avoid the environmental decline and would still make the trade profitable to both parties ? Is such a trade possible in this scenario ?
An article written immediately after re election of George W. Bush referred to his environmental rule system where power plants purchase and sell the right to pollute in form of emission credits,
International capital movements can bring major gains both to the lending or investing countries and to the borrowing countries, through intertemporal trade and through portfolio diversification for the lenders/investors
introduction to the global economy and theories of trade.1. clearly explain any five linkages that connect todays
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.
Suppose that 1 yr. US interest rate is 5%. if the 1 year forward rate against the lb. is $1.75 / lb and the spot exchange rete is $1.78/lb, what must the equiavalent British interest rate be if covered interest parity holds?
One of the basic premises of a capitalistic economy is ownership of private property. This comprises the ownership of private firms, in part or in entirety.
Much of the discussion regarding the effects of MNE investment on "host" countries has focused on the pros-and-cons for less developed-countries (LDCs). Access these arguments in terms of post-WWII experience up to the present day, particularly th..
Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short- and/or long-term productivity in the U..
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.
In the U.S. computer industry, many imported inputs come from East Asia. The following question focuses on the relationship between the U.S. and Indonesia. Suppose the U.S. dollar has recently appreciated relative to the Indonesian rupiah.
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time
What problems do cartels face in getting all members to cooperate Which specific problems are important for OPEC?
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