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1. Explain why the general level of wages is higher in the United States and other industrially advanced countries. What is the single most important single factor underlying the long-run increase in average real-wage rates in the United States?
2. "Many of the lowest-paid people in society-for example, short-order cooks-also have relatively poor working conditions. Hence, the notion of compensating wage differentials is disproved." Do you agree? Explain.
3. Which industries and occupations have the highest rates of unionization? Which the lowest? Speculate on the reasons for such large differences.
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
Indicate five of the world's economies that are the most free. How do the income levels and growth rates of freer economies compare with those that are less free Has the United States become more or less economically free during the past decade
Assume that each United States worker can produce eight units of food or two units of clothing daily.
Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies. Relate their economic collapse to U.S. current economic problems. How does U.S. deficit spending affect our economy
In the twenty year period 1980-2000 virtually no private jobs were developed in the nations of the European Union as compared to 33 million new private sector jobs in the United States.
Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppose also that the interest rate on a one-year German bond is 7% and the interest rate on a one-year U.S. bond is 4%. Suppose that you expect the exchange rate in one yea..
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?
As a seller of data to customers in Brazil, suppose you are an exporter and you periodically buy advertising space on Brazilian Web sites to advertise your service;
The market for chicken sandwich, considered a normal good, is in equilibrium. Analyze the effect of the following events on equilibrium price and equilibrium quantity of chicken sandwich.
A United State Company, has a subsidiary in Europe. it is deciding whether to invest $2 million of its (the parent company) funds in a 3 year project in Europe.
What are at least three criteria you would use when assigning a manager to work in an overseas location and what are three items you might advise them about before accepting the assignment?
Discuss and explain how does the Heckscher-Ohlin theory different from Ricardian theory in describing international trade patterns?
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