Answer questions based on the following excerpt from a speech given by Pascal Lamy, Director-General of the World Trade Organization, on Sept. 6, 2006 "China has fundamental interest in an ambitious outcome itn these negotiations. Givenits relative openness, it has an offensive interest in ensuring a decrease of tariffs for m
1. You are an advisor to the government of Argentina. Argentina is considering placing a tariff on imports of cotton. Please prepare a report for the president that evaluates this proposal base on the criteria listed below. you may assume for the purpose of this exercise that the import tariff has an effect equivalent to closing
Draw a domestic supply and demand diagrams for a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity? On your diagram show a protective tariff that eliminates approximately one-half of the assumed imports. What are the price-quantity effects
1. What is more beneficial to an economy a surplus or a deficit relative to budget expenditures? Why? 2. If you were chief economic advisor to the President today, what are the three recommendations you would make to him to improve the overall effectiveness of the economy?
Country Bushels of Grapes Computers Italy 100 300 Canada 150 600 Using this scenario, can you explain to me... Who should specialize and in what? Who has an absolute advantage and in what? Who has a comparative advantage and in what? What is the o
1. (I think the answer is c but could possible be D) A test was scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't attended the party, you could have studied for the test or gone to a movie. Which of the following sentences is true? a. The opportunity cost of going to the movie is studying f
1. The port of Mombassa is the only international port in Kenya. In fact the Port of Mombassa not only serves Kenya but is also the main gateway to the Eastern African hinterland countries of Uganda, Rwanda, Burundi, the Democratic Republic of Congo and Southern Sudan. Using your knowledge of economy theory, examine the market
I need to have a clear understanding of how the theory of trade and comparative advantage affects Shell Oil company as they continue unfair business practices in Nigeria. What barriers to trade do they face?
Discuss the following attached excerpt from a recent news article. In your discussion demonstrate that you can use the concepts of: "price discrimination," and "barriers to entry" to explain the current success of Harrah's strategy, and the prospects for continued success with their strategy.
8. A farmer and a rancher currently lead a subsistence existence, producing only meat and potatoes. The farmer could produce 2 units of meat per 40 hour week, or 6 potatoes, or any constant combination of the two. He currently splits his time between meat and potato production. The rancher can produce 45 units of meat, or 5 unit
I need to find some examples of Multinational corporations that have faced environmental problems on a foriegn country and taken measures to improve those problems. My assignment states to select a multinational corporation that has been successful in forming partnerships with workers and the host communities. I have searched bu
Draw the production possibility curves for each country.
(See attached file for full problem description and chart) --- Pg 51 # 3 Question: If it takes one hour to travel from New York City to Washington, D.C. by air, but it takes five hours by bus. If the airfare is $110 and the bus fare is $70, which would be cheaper for someone whose opportunity cost of travel time is $6 per
I'm working on my MBA and I need to do a paper of 2-3 pages, please provide guidance of how should I develop the paper based on info below Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of
How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns? The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading partners. Explain. How does the Leontief paradox challenge the overall applicability of the factor-endowment mode
In a committee meeting of the United Nations you are considering the following questions: 1. When is international trade an opportunity for workers? When is it a threat to workers? 2. What are some of the major challenges confronting the international trading system?
Chap 1, 27. Suppose that the government wants to increase Social Security taxes by $1 per hour of work and is undecided between increasing the tax on workers and increasing the tax on employers. According to the last sentence of this chapter, " the resolution of this conflict ultimately makes not one bit of difference to any
Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect
Can you walk me through the steps to solve these problems? Lily Cosmetics has annual sales of $400,000,000 maintains a net after tax profit margin of 5% and has a sales-to-assets ratio of 4 a. What is its return on assets? b. If its debt/equity ratio is 1.0 , what is the return
Select a U.S. multinational company. In terms of currency denomination, Discuss how the firm prices its revenues and costs. For MNE's ( MULTINATIONAL ENTERPRISES) with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information what
Describes a simple Ricardian problem about comparative advantage
As a manager of a financial planning business you have two financial planners.In an hour a person can produce 1 statement or answer 10 calls while another can produce 3 statemnets or answer 12 calls. Does either person has an absolute advantage in producing both products?Should they be self sufficent ( each producing statements
Suppose that the world price for steel is below the U.S. domestic price, but the government requires that all steel used in the United States be domestically produced. a. Use a diagram like the one in Exhibit 5 to show the gains and loses from such a policy. b. How could you estimate the net welfare loss (deadweight loss)
Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage
I am trying to defend my view on the following: In the two years prior to its merger with Nextel, Sprint Corporation cut approximately 2,000 employees. In addition, Sprint outsourced nearly 90% of its Information Technology functions from within the company to lower-cost countries outside the United States. Approximately 40
I do not understand. If the United States lost hundreds of thousands of jobs, how is it that NAFTA was a good decision for the US and probably not for Mexico and Canada?
Can we conclude that the effects of NAFTA are good examples of comparative advantage? Was the enactment of NAFTA a good or bad decision?
Explain unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant. Isn't free trade good for two countries even if one of them has an absolute advantage (in terms of low costs and productivity) in all goods and services produced?
Let's estimate what happens to the exchange rate between the United States and the imaginary country of Oz. The ruler of Oz is a totalitarian wizard. Since the economy of Oz is centrally planned, they lack three important ingredients that would make them more effective: free market efficiency, capital investment, and technolo
As a manager of a financial planning business you have two financial planners. In one hour one can produce 1 financial statement or answer 10 phone calls, while the other planner can produce 3 financial statements or answer 12 phone calls. Does either person have an absolute advantage in producing both products? Should these p