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International Investment

International investment strategy

What is a good direction/approach to this assignment? Your proposal to expand into three countries was approved by the CEO. Now you have to decide on a strategy - will PM Company simply sell its products (trade) or expand its markets via investment? Choose one international trade and one international investment strategy to r

Free Market Concepts

Our economy thrives on competition. Market forces will lead firms to produce the mix of goods most desired. Unforeseen events can be responded to in a rational manner. The constant struggle for profits will stimulate firms to cut costs. Note that technical efficiency results from attention to self-interest, not the public intere

Trade Deficit

I need help on just getting started with each question as to which angle to take and what resources to use. 1. What has caused the U.S. run a merchandise trade deficit year after year since the early 1980s? 2. Is the current account a deficit problem? Explain. 3. Is the trend of the international investment position

Domestic Saving and International Capital Flows

Questions Martin Feldstein and Charles Horioka of Harvard University argues that in a world of perfect capital market integration, there should be little long term correlation between domestic saving and investment. Explain. What factors might explain closer than expected correlation observed?

cutting government expenditures and rising interest rates

Economic concepts The following figure illustrates internal and external balance in an economy with capital flows. "Assume fixed exchange rate" See Attached The full employment output is shown as Y* so that at the point E, we have both full employment "internal balance" and balance of payment equilibrium ":external bala

Assess questions and explain briefly for each if they are true or false and why?

1.An increase in Canada's exports will always lead to an improvement in our current account. (true/false) 2.If a Canadian purchases shares in Microsoft, this shows up in the Balance of Payments Financial Account as a debit item only. (true/false) 3.Purchasing power parity cannot hold if the law of one price does not hold. (tru