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    Bandwagon effect on exchange rates

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    1. Explain how the psychology of investors and the bandwagon effect can have an impact on the movement in exchange rates. Do you believe that the bandwagon effects really happen. Explain you answer

    2. Briefly explain what makes up a value chain Describe the roles of the primary activities and the support activities in the value chain

    3. Evaluate who gains and who losses from the imposition of a tariff on imported goods How can it be determined whether the net gain from the tariff exceeds the net loss

    4. Name three reasons that licensing may not be an attractive option

    5. Evaluate the arguments for and against globalization regarding jobs and income. Where do you stand on this topic

    6. What two revolutions occurred in Europe in the late 1980 What are the objectives of the Single European Act

    7. In regard to the communication strategy evaluate the difference between a push versus pull strategy provide an example for each.

    8. In the context of forecasting foreign exchange movements describe the difference between fundamental analysis and technical analysis. Which approach is proffered by economist why

    9. Evaluate all factors that influence a firms ability to sell the same product worldwide, Ideally is it better for a firm to sell the same product worldwide or would a firm rather customize its products for each individual market

    10. Firms that compete in the global market often face pressures for local responsiveness. Described what is meant by local responsiveness and identify the underlying reasons the pressures exist.

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    Solution Summary

    A Word attachment explains the psychology of the investor bandwagon effect.