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Explain how current account imbalance create a risk for the global economy. What does the large U.S. current account deficlt tell us about the U.S economy? Are there reasons to be concerned about the size and peresistence of the US current account deficit?
If demand in the United States is given by Q1 = 7,200 - 300p1, where p1 is the price in the United States, and if the demand in England is given by Q2 = 3,600 - 200p2, where p2 is the price in England.
The other significant indicator in international trade is balance of payments. Summarize your understanding of microeconomic and macroeconomic theory in a discussion of balance of payments
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
Discuss and explain the difference between comparative advantage and absolute advantage. Also, provide some specific example so I can understand the difference.
Investment A has an expected value of five and a standard deviation of two. Investment B has an expected price of 10 and a standard deviation of five.
Examine issues of where, when, and how to be considered through an organisation planning an international entry strategy. How can the potential benefits be made to exceed the risks?
Factors hindering the flow of FDI into the country and the incentives offered by the country for attracting FDI
An economy can be stimulated through printing more money. Determine the dangers of doing that? Inflation can be reduced by reducing the money supply.
How can this idea be applied to activities of profit making firms and profit loosing companies or to the revenue and costs components of a company's net profit?
Assume GM is planning purchasing a plant in Hungary. All sales will be to Hungarian customers and denominated in forints. The projected returns and investments are as follows:
What would be the relative supply of Cars in the world market, if both NZ and UK were to produce these two goods on the basis of their comparative advantage in production?
Compute the average propensity of consumption, average propensity of investing out of income and the average propensity of imports out of income
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