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Q1. Assume the unit cost for pogo sticks is #40 in North Pogo as well as $8 in South Pogo, while the current exchange rate is $1=#4. Clarify how the current exchange rate between # as well as $ will get adjusted by market forces through the Law of One Cost. What will be the adjusted exchange rate between the two currencies?
Q2. Would a typical hedger be willing to pay a risk premium in order to hedge by buying foreign currency forward?
Do you think the net effects of trade blocs are good or bad for world trade? Why? How do the efforts of the WTO relate to these trade blocs.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
Assume no change in current productivity or current labor supply in either country. What is happening to financial flows.
Consider a product market for a normal good. Suppose consumers' income increases. Explain what will happen to labor demand for firms in that market.
As part of your answer converse whether or not one or more of the legs of the organizational stool was unbalanced.
What are the informing factors of global interdependence, including the economic factors, political dynamics and cultural differences.
Identify those who gave us the concepts of monopsony and human capital.
How would a downward change in the money supply affect you personally. How would it affect your career. What impact would rational expectations have on your decisions in this situation.
Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply
During the month, there are 26 workdays. The company has 15 workers.
Explain why sharp decline in oil prices might not necessarily have positive or negative impact.
Can you find a Nash equilibrium in pure strategies that is not efficient. Find the sub game perfect equilibrium as a function.
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