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Due to the problems in countries such as Spain, Italy and Greece; Germany had (and is having) an inflow of workers looking for jobs (and better conditions) from these countries. Due to the unfavorable economic conditions in their own countries these workers are often willing to work for lower salaries than German workers. Assuming that a high number of immigrant workers are already part of the labor force of Germany, answer the following questions. (You can use Germany and only one of the other countries in your answers)
a) What will happen to the unemployment in Germany and the other countries if Germany decided to exit the EURO zone, deport all non-German workers and make it illegal to hire non-German workers in Germany?
b) What will happen to GDP (production) in Germany and in the other countries?
What is the slope of the budget line
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How would a substantial appreciation in the European euro in the foreign exchange market affect the quantity of imports of European products by the U.S. How would such an appreciation of the European euro affect travel by Americans to Europe
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From the same problem, suppose monetary expansion in the US caused all prices in the US to increase by 50%, so the turkey would be 45 US dollars, then what would happen to the exchange rate.
n the flexible exchange rate system, discuss the effects of the following events on the exchange rate between U.S. dollar and Japanese Yen: Please indicate whether US$ will appreciate or depreciate.
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?
What can we learn about International Business from this thing and outline why the culture of a country influences the costs of doing business in that country. Illustrate your answer with examples.
If American consumers decrease their spending on imports but leave their overall consumption spending constant, "hence buying more locally made goods", with all other factors constant what would happen to America's current Account and why ?
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In 2006 the hourly cost to workers per German industrial employee was $33. The hourly expense to employers per United States industrial employee was $23.65 while the average cost per Taiwanese industrial worker was $6.38.
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