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International Economics

Deadweight Loss and Taxation

Suppose that a market is described by the following supply and demand equations: QS =2P, QD =300−P. (a) Solve for the equilibrium price and the equilibrium quantity. (b) Suppose that a tax of T is placed on buyers, so the new demand equation is QD = 300 − (P + T). Solve for the new equilibrium. What happens to the pric

IS/LM model ; 7 short questions.

Consider this economy 1. The consumption function is given by C = 200 + 0.75(Y − T ). The investment function is I = 200 − 25r, where r is the real interest rate. Government purchases and taxes are both 100. Inflation expectation πe = 0. For this economy, graph the IS curve for i ranging from 0 to 8. Interpret the IS cu

2 Countries Trade

Country Economic and Trade Summary Reports Introduction: Global marketing managers must understand the economics and trade policies of countries and regions within which they trade. In this assignment, take the perspective of a global marketing specialist who has been asked to compare and contrast the threats and opportunities

Expansion of a Business into an Asian Country

Businesses large and small now compete in a truly global economy. To be successful in another country it is essential to understand and appreciate the cultural differences that exist. Business practices and ideas that work well here in the United States may not necessarily be expected to do so in other cultural environments.

Managerial Economics: Groupon

Groupon is a popular group buying and daily deals website. In a recent promotion, a local restaurant to sold buffet vouchers at a steep discount on Groupon's website. Customers who turn up at the restaurant without the vouchers will have to pay full price. Suggest reasons for the two - part pricing offered by the restaurant usin

Global economical environment

Read the attachments and answer the following questions: - Chapter 4: Problem 6, Advanced Analysis (p. 91: see Chapter 4 part 3 attachment, last page) - Chapter 6: Problem 6, Advanced Analysis (p. 132 see Chapter 6 part 3 attachment, last page) NOTE: Numbers and calculations are not self-explanatory. There should be a w

Government Bureaus and Private Firms

How do government bureaus differ from private firms? Why is there good reason to believe that bureaucrats will seek to supply more than the efficient level of their output in any year? Why will the losses in efficiency result if a government bureau succeeds in maximizing its annual expenditures? (Answer provided in approximat

Sydney is interested in starting a new business economic profit

Sydney is interested in starting a new business, but would have to give up a job with a total compensation of $100,000 per year. After researching the new business opportunity, Syndey developed the following estimates. Annual Revenues: $300,000 Wages and payroll taxes (not including Sydney): $100,000 Benefits: $25,000 Supp

Find HHI for the Widget Industry.

Assume the Widget Industry is composed of the following firms with associated market shares: Firm Market Share A 37 B 20 C 10 D 5 E

Maximizing Revenue: Daimler-Chrysler Smart Car

You are a manager at the Daimler-Chrysler. Daimler-Chrysler has lost money on the Smart Car since the first model rolled off the assembly line in 1998. By bringing its little car into the huge U.S. market, the firm hopes to reverse its fortunes. Former race car driver Roger Penske has signed on to develop a network of up to 50 S

International Financial Management (Forward Premium)

Forward Premium: Compute the forward discount or Premium for the Mexican peso whose 90-day forward rate is $ .102 and spot rate is $ .10. State whether your answer is a discount or premium. Thank you. The reference textbook is International Financial Management by Jeff Madura, 10th edition.

Discounted Dividend Model Applied

Next year expects dividends to be 0.85. Per share and earning per share to be 2.45 the firm growth rate is expected to be 14% and its required return is 15% what is intrinstic value of the stock currently. The stock is trading at $50 explain whether or not its undervalued.

Buying Imports and Exports

Discuss advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry. * First, post the definitions of import and export, and give examples of a chosen company and product for 2 import and 2 export item. * Advocate either buying imports or buying domestically for r


Many industrialized countries such as the United States attempt to seriously restrict immigration of production workers, but are more open to immigrants who are highly-skilled. Why might this be the case? Why is this a problem for developing countries and how might they deal with the problem?


Deliverable Length: 3-4 paragraphs Details: The company you work for is expanding its business and would like to begin to trade with another country. Go to 2008 National Trade Estimate Report on Foreign Trade Barriers for specific country information. The URL for this link is:

Call Option valuation using Binomial tree

A European Call Option on a non-dividend-paying stock where the stock price is $40, the strike price is $40, the risk-free rate is 4% per annum, the volatility is 30% per annum, and the time to maturity is 6-mo. a) Calculate u, d, and p for a two-step tree b) Value the option using a two-step tree.

Evaluation of announced free-trade direction

Suppose that a country announces that it is moving toward free trade by reducing its tariffs on intermediate inputs while maintaining its tariffs on final goods. What is your evaluation of announced free-trade direction of the country's policy?

investment in human capital

Investments in human capital are a key component to increasing economic growth, particularly in developing countries and in rural and urban America. Provide one example of an investment in human capital.

efficient level of abatement

Using a graph of the pollution abatement market, model a situation in which the allocatively efficient level of abatement occurs at 100 percent, or equivalently where pollution is zero. Referring to the relative position of the MSC and MSB curves, explain this outcome intuitively.

Quantitative Decision-Making Analysis

Mr. and Mrs. Smith's have enjoyed sailing small boats since they were 7 years old. They want to start a company to produce small sailboats. Because fo the expense involved, they decided to conduct a pilot study. They estimate that the study will cost $10,000. Furthermore, the study can be either successful or not successful. The

limit on exports

In 1981, the US negotiated an agreement with the Japanese. The agreement called for Japanese auto firms to limit exports to the US. The Japanese government was charged with helping make sure the agreement was met by the Japanese firms. Were the Japanese firms necessarily hurt by this limited ability to export and why?

Organizational architecture

Jan van der Schmidt was the founder of a successful chain of restaurants located throughout Europe. He died unexpectedly at the ages of 55. Jan was sole owner of the company's common stock and was known for being quite authoritarian. He personally made most of the company's personnel decisions. He also made most of the decis

Foreign Currency Exchange

When the Euro was first issued it hit the market at $1.17/€ on 1 Jan 2001. Today it is trading for $1.0625. a. What was the Euro price of the dollar when the Euro debuted? b. What has been the appreciation or depreciation of the EURO since it’s debut? c. What has been the average annualized appreciation or depre