What effect on country current account balance

Assignment Help Financial Management
Reference no: EM131314000

What effect on a country's current account balance is an increase in the use of quotas expected to have? Will it increase, decrease or remain the same? Please provide an explanation for your answer. Would your answer change if other governments retaliate? If so, how? Please explain.

Reference no: EM131314000

Questions Cloud

Your account with the broker after the short sale : Old economy traders opens an account to short 1,000 shares of internet Dreams. The current price of internet dreams is $80. The initial margin requirement (T-bills or cash) is 50%. Which of the following best describes the asset side of your account ..
Considering investing in an annuity contract : Robben Company is considering investing in an annuity contract that will return $26,500 annually at the end of each year for 15 years. What amount should Robben Company pay for this investment if it earns an 9% return?
What is the one period rate of return on bond : Suppose that you are holding a 5% coupon bond maturing in a year with a face value of $1000. The current market interest rate or yield to maturity is 8%. If the market interest rate falls from 8% to 6% over the course of the year, what is the one per..
Holding other factors constant : Assume that the U.S. places a strict quota on goods imported from Chile and that Chile does not retaliate. Holding other factors constant, this event will have what effect on U.S. demand for Chilean pesos? What effect on the value of the peso? Will i..
What effect on country current account balance : What effect on a country's current account balance is an increase in the use of quotas expected to have? Will it increase, decrease or remain the same? Please provide an explanation for your answer. Would your answer change if other governments retal..
Portfolio consists : You have $11,000 to invest. You want to purchase shares of Alaska Air at $42.66, Best Buy at $51.52, and Ford Motor at $8.61. How many shares of each company should you purchase so that your portfolio consists of 10 percent Alaska Air, 40 percent Bes..
What is your one period rate of return on the bond : You buy a 3-year, 10% coupon bond with face value $1000 today. The market interest rate currently is 10% also. You hold the bond for a year and sell it off a year later when the interest rate is 12%. What is the market price of the bond a year later?..
Compute the standard deviation : The past five monthly returns for Kohl’s are 3.72 percent, 4.07 percent, −1.86 percent, 9.34 percent, and −2.74 percent. Compute the standard deviation of Kohls’ monthly returns.
Holding everything else constant : You plan to borrow $60,000 from the local bank. After doing your due diligence, your options boil down to two. You have the option of option A; a 5-yr loan, 10% annual percentage rate, compounded daily, Six years from today you need $600,000. You pla..

Reviews

Write a Review

Financial Management Questions & Answers

  Debt-to-equity ratio

Virtual Banality Broadcasting Corp. has a debt-to-equity (D/E) ratio of 1.75 compared with the industry median average D/E ratio of .5. This means that the company

  Mutual fund that is expected to earn rate of return

Suppose you invest $1000 into a mutual fund that is expected to earn a rate of return of 11%. How much money will you have in 10 years? If $8000 is invested in a certain business at the start of the year, the investor will receive $2400 at the end of..

  What is their current market value

BMW just paid a dividend of $7.14 and is expected to grow at 4%. You have estimated a required return of 10%. What is their current market value?

  Considering making loan

Mitchell Bancorp is considering making a loan at 3% interest (c/a) to SohnCo to buy a machine tool worth $300 million. The tool has no salvage value and is depreciated over 3 years by sum-of-years digits. In this state, SohnCo pays 50% tax. The befor..

  Liquid assets-which tend to have lower bankruptcy costs

Firms with more liquid assets, which tend to have lower bankruptcy costs, tend to use less debt. If changes in the bankruptcy code make bankruptcy less costly to corporations, then this would likely reduce the debt ratio of the average corporation.

  Indifferent between accepting or rejecting the project

Barrett Pharmaceuticals is considering a drug project that costs $2.47 million today and is expected to generate end-of-year annual cash flows of $221,000 forever. At what discount rate would Barrett be indifferent between accepting or rejecting the ..

  Decrease the value of a call option

Which of the following would decrease the value of a call option?

  Random withdrawal rate

The fraction of long-term investment that is liquidated, respectively, in state of nature ω ∈ {L, H}). What does the solution look like for l = 0 and l close to 1?

  Undifferentiated lump sum in settlement of the whole claim

Farmer Giles fed grain, purchased from the Fowl Supply Co Ltd in November 2013 to his fowls, as a result of which most of his fowls died. He lost profits on egg sales from 2013-2015 amounting to $250,000, had a 3 year contract to supply eggs to a lar..

  Effective interest rates that would in fact make

You have just put your house up for sale. The agent tells you that two offers have been made: (1) 400,000 now and 400,000 in 2 years; and, (2) 287,500 now, 237,500 in 1 year and 275,000 in 2 years. Your agent says that one offer seems “just as good” ..

  Preffered stock is a hybrid security

Preffered Stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with ..

  What is the return from holding the bond for the first year

You have been asked to value a bond that has a coupon of 3.00%, a maturity of 14 years, a par value of $100,000, and a yield to maturity of 3.25%. What is the current price of the bond? In one year the bond is priced to yield 3.50%, what would be the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd