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A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is pA=100-Qa, and the Japanese inverse demand function is p1=80-2QJ, where both prices, pA and pJ, are measured in dollars. The firm's marginal cost of production is m=20 in both countries. If the firm can prevent resales, what price will it charge in both markets?
4 Companies located at different points on a river dump many quantities of effluent into it. The effluent adversely effects quality of swimming for homeowners who live downstream.
An increase in foreign output/income (Y*)-assume there is no change in the foreign interest rate and an increase in home country money demand (L)
A company that produces T-shirts and sells its items in a perfectly competitive market. The manager forecasts the wholesale value of T-shirts next year to be $7.00.
The European Union has heavily sheltered its farm sector through import duties; in addition, Union subsidizes its exports of agricultural items. If cropland is regarded as a factor of production.
Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + bP + cM + dPR From Regr..
major goal of the World Trade Organization and comparative advantage means that one nation can produce and expansion of commercial bank lending
1. why a change in the real exchange rate changes a country's net exports. 2. why trade deficits tend to move to zero over time. 3. how foreign prices affect domestic prices. 4. the determination of the real exchange rate.
Describe the increasing returns to scale as a basis for international trade. Be sure that you discuss the relevant concepts, explain important features of such trade,
The U.S. Postal Service (USPS) operates at a loss but its closest competitors - UPS and FedEx - both operate at a profit. Suggest how fixed costs have contributed to the situation of the USPS. Provide support for your response.
As the French franc appreciates in value relative to the United States dollar, what happens to the price of United States goods in France? What happens to the price of French goods in the United States?
Explain what is the effect on the exchange rate of an increase in the country's money supply according to the asset market or portfolio approach and in what ways does it differ from the monetary approach?
Discuss the characteristics of international, multidomestic, global, and transnational strategies. Include situations and a specific example in which each strategy would be most appropriate.
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