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International trade

Question

International trade allows a country to specialize in the manufacture and export of products that it can produce

efficiently, and import products that can be produced more efficiently in other countries.

Some patterns of trade are fairly easy to explain—it is obvious why Saudi Arabia exports oil, the United States exports agricultural products, and Mexico exports labor-intensive goods. Yet others are not so obvious or easily explained, such as cars exported from Japan. 

Respond to the following:

•  Most countries create a list of “hostile” countries that require special permission before an exporter will be allowed to proceed. Choose the countries and products you would like to place on this list for your nation. Post the list along with the explanation for each product and country.

must be 1 page in lenth

 
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Indonesia’s economic growth

Question

Indonesia’s economic growth has been hampered for decades, first because of the dictatorship of former President

Suharto and the massive debts that were accumulated during his regime, and, more recently, because of the country’s excessive red tape and corruption that make it difficult to start a business. Transparency International ranks Indonesia among the most corrupt nations in the world. Economic growth is also hindered by the country’s poor infrastructure and low level of labor productivity. You will probably agree that Indonesia’s problems are interrelated. For example, the red tape and corruption that scare off potential foreign investors also mean that the country loses the jobs and the capital that could improve its economy and infrastructure.

Respond to the following:

•  Read Chapter 3 from your textbook and explain why or why not you think the Indonesian economy grew despite or because of a totalitarian regime.
•  Discuss what might explain India’s relatively poor performance under a democratic political system.

Must be at least 1 page

 
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Your parents have accumulated a $170,000 nest egg

Question

Your parents have accumulated a $170,000 nest egg. They have been planning to use this money to pay college

costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $32,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years. Use 8 percent as the appropriate interest rate throughout this problem. Use Appendix A and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a.How much money will your parents have at the end of four years to help you with graduate school, which you will start then? (Round your final answer to 2 decimal places.)
  Funds available for graduate school$   
b.You plan to work on a master’s and perhaps a PhD. If graduate school costs $29,780 per year, approximately how long will you be able to stay in school based on these funds? (Round your final answer to 2 decimal places.)
  Number of years  

rev: 10_11_2014_QC_56342, 02_11_2015_QC_CS-7555

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Lear Inc. has $1,030,000 in current assets, $465,000

Question

Lear Inc. has $1,030,000 in current assets, $465,000 of which are considered permanent current assets. In

addition, the firm has $830,000 invested in fixed assets.

a.Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 9 percent. The balance will be financed with short-term financing, which currently costs 6 percent. Lear’s earnings before interest and taxes are $430,000. Determine Lear’s earnings after taxes under this financing plan. The tax rate is 40 percent.
  Earnings after taxes$   
b.As an alternative, Lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long-term financing and the balance with short-term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be $430,000. What will be Lear’s earnings after taxes? The tax rate is 40 percent.
  Earnings after taxes$   

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