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Brazilian Ethanol Producers (who make ethanol from sugarcane) have lower production costs than U.S. producers. Indeed, even though it costs 16 cents per gallon to transport ethanol from Brazil to the U.S., which also imposes an import tariff of nearly 60 cents per gallon on Brazilian ethanol, the United States still imports millions of gallons of ethanol per year from Brazil. If Congress really cares about protecting the environment and reducing our reliance on foreign crude oil, why do you suppose we have a large import tariff on ethanol?
Assume that one nation subsidizes is exports and other country imposes a countervailing tariff that offsets effects, so that in the end relative prices in the second country are unchanged.
WASHINGTON-Less than one month after President Obama took office, Congress last night passed his flagship proposal, an unprecedented collection of tax cuts and new spending that Democrats say offers the country its best hope to stave off an impend..
Discuss and explain how does the Heckscher-Ohlin theory different from Ricardian theory in describing international trade patterns?
What is the forward premium on euros (the forward discount on dollars)? What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?
Assume a scenario where you are an entrepreneur considering to expand your production of kitchen gadgets. You require to pay back a loan of $5,000,000 over 5-years.
overnight is $1200 and would be zero in L.A. The airline is contemplating eliminating the ngiht flight out of L.A. and replacing it with a morning flight. The estimated number of passengers is 70 in the morning flight and 50 in the return afternoo..
One of the biggest risk factors for multi-nationals enterprise (MNEs) is using the potential volatility of exchange rates. Explain mechanisms that can be used to alleviate the risk, including discussion of ways in which an MNE might increase profi..
Suppose Congress cuts spending for the military, and then unemployment rises in the U.S. defense industry. Is there causation in this situation, or are we observing an association between events
Explain 3-ways in which Federal Reserve can change the money supply. If the Federal Reserve is going to adjust all of these tools during an economy that is increasing too quickly.
When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." What is the implied price elasticity of demand by foreigners for a British education is (in absolu..
Once you've had a chance to look at data, I'm interested to hear your perspective, how they compare with international unemployment and inflation levels, and what impact, if any, they have on GDP.Unemployment and Inflation are two stats I'm sure yo..
Assume that the Kiribati can manufacture 1000 tons of breadfruit or 500 tons of fish, and that Tuvalu can manufacture 750 tons of breadfruit or 1875 tons of fish.
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