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Distinguish horizontal foreign direct investment from vertical foreign direct investment.
A domestic industry has been able to prove that a foreign producer engaged in dumping. The foreign producer's counterargument is that it has charger higher prices in its home market simply because this is its profit-maximizing strategy in its home market where barriers to entry have given it monopoly pricing power, whereas it faces considerable competition in the domestic market and hence charges a lower price for its product in that market. Explain why this might be a reasonable economic argument, yet might do little to fend off the imposition of the antidumping penalties under current international antidumping rules.
What is Inter industry and Intra-industry trade? How do economies of scale and product variety provide an explanation for Intra-industry trade?
One study, based on responses from 1, 013 randomly selected teenagers, concluded that 43% of teenagers cite grades that their greatest source of pressure.
A piece of equipment that was purchased two years ago for $59,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Since its performance was less than expected, it was upgraded for $20,000 one year ago. Increased demand now ..
If/when the proper research is done businesses can maximize profits while developing new products as well as promote their current products in the most advantageous of ways.
In the theory of consumer behavior, certain axioms about the nature of preferences imply that indifference curves cannot cross. Which axioms imply this? Explain your answer using a diagram and using words.
inflation was 3% last year, expectations are adaptive, and the phillips curve equation is pi = pi + 0.5 (Y -Y*)/Y*. What will the inflation rate be this year?
Consider a principal-agent model in which the principal is the risk- neutral owner of a firm, while the agent is the firm's manager who has pref- erences defined on the mean and the variance of his income w and on his effort level e as follows:
If one automobile brand has an elasticity of 1.5 and another has an elasticity of -.03, what would account for the difference?
A rightward shift of the long-run aggregate supply curve is caused by
Be sure to construct an essay that addresses the selected question fully. Be sure to use specific examples as evidence that supports your argument. the framework for the first part of the course has been the “convergence model.” Explain what this is,..
Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
You have decided to use a credit card to purchase a new television. What is the immediate consequence of this purchase?
Rent control is an example of a price ceiling. Which of the following problems must be addressed under a rent control program?
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