9.Consider the following firms, and assume that Hong Kong is our domestic economy.Foreign Steel Company,HK-owner, (Firm 1)Domestic Oil Company,Indian-owner (Firm 2)RevenuesForeign Car Company,Italian-owner (Firm 3)Revenues$175$200Revenues$300from salesfrom salesfrom salesExpensesExpensesWages$50ExpensesWages(to domestic$100Wages$70(to(toforeignworkers)workers)workers)Steel$100purchases(from firm 1)Oil$100purchases(from firm 2)Profit$125Profit$100Profit$30Compute the value added by each firm. Then, calculate the GDP and GNP of Hong Kong. Noneed to show derivations.VALUE ADDEDFirm 1Firm 2Firm 3foreign GDPGNP

Answer GDP = It is the sum of all the products and services produced in a country in a year. GNP =…

9. Consider the following firms, and assume that Hong Kong is our domestic economy. Foreign Car Company, Foreign Steel Company, HK-owner, (Firm 1) Domestic Oil Company, Indian-owner (Firm 2) Revenues Italian-owner (Firm 3) Revenues $175 $200 Revenues $300 from sales from sales from sales Expenses Wages $50 Expenses Wages (to domestic $100 Expenses Wages (to foreign $70 (to workers) workers) workers) Steel $100 purchases (from firm 1) Oil $100 purchases (from firm 2) Profit $125 Profit $100 Profit $30 Compute the value added by each firm. Then, calculate the GDP and GNP of Hong Kong. No foreign

9. Consider the following firms, and assume that Hong Kong is our domestic economy. Foreign Car Company, Foreign Steel Company, HK-owner, (Firm 1) Domestic Oil Company, Indian-owner (Firm 2) Revenues Italian-owner (Firm 3) Revenues $175 $200 Revenues $300 from sales from sales from sales Expenses Wages $50 Expenses Wages (to domestic $100 Expenses Wages (to foreign $70 (to workers) workers) workers) Steel $100 purchases (from firm 1) Oil $100 purchases (from firm 2) Profit $125 Profit $100 Profit $30 Compute the value added by each firm. Then, calculate the GDP and GNP of Hong Kong. No foreign

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Pricing foreign goods The nominal exchange rate is the price of one currency in terms of another currency. A nominal exchange rate specifies how many units of one country's currency are needed to buy one unit of another country's currency. Suppose the following table presents nominal exchange rate data for November 3, 2019, in terms of U.S. dollars per unit of foreign currency. Use the information in the table to answer the questions that follow. Foreign Currency Brazilian real (BRL) Canadian dollar (CAD) Euro (EUR) Japanese yen (JPY) Mexican peso (MXN) United Kingdom pound (GBP) Cost of One Unit of Foreign Currency (Dollars) 0.3329 0.7176 1.129 0.008398 0.0934 1.603 Suppose that on November 3, 2019, an antique woven tapestry handmade in Canada is priced at CAD 4,190. The approximate U.S. dollar price of the tapestry would be If the nominal exchange rate for the U.S. dollar-Canadian dollar falls from $0.7176 to $0.46644 per Canadian dollar, the Canadian dollar relative to the U.S.…
How is the merchandise trade balance calculated? a. the total value of the economy's goods minus the value of exported goods b. the value of exported goods minus the value of imported goods O c. the total value of the economy's goods minus the value of imported goods d. the value of exported goods plus the value of imported goods e. the value of imported goods minus the value of exported goods
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3. (15%) Import tariff on a manufactured good in a country X equals 10 % while tariff on raw materials is 2%. In price of the final good, value of imported raw materials makes up 50%. Calculate the effective rate of protection for domestic manufacturing in the country.
(Balance of Payments) The following are hypotheticaldata for the U.S. balance of payments. Use the data tocalculate each of the following:a. Merchandise trade balanceb. Balance on goods and servicesc. Balance on current accountd. Financial account balancee. Statistical discrepancyBillions of DollarsMerchandise exports 350.0Merchandise imports 2,425.0Service exports 2,145Service imports 170Net income and net transfers 221.5Change in U.S.-owned assets abroad 245.0Change in foreign-owned assets in theUnited States100.0
Question 3. Nominal and real exchange rates (a) The table below shows the nominal exchange rate between the euro and sterling and the CPI values in Ireland and the UK over the period 2007 to 2013: Nominal exchange rate CPI (Ireland) CPI (UK) 2007 (Jan) 67p 100 103.2 2013 (Jan) 84p 105.6 121.1 (i) Write down the formula/equation for the real exchange rate. (ii) Use this equation to calculate the change in the real exchange rate (RER) between Ireland and the UK over the period 2007-2013.
(A). Figure 1: equilibrium exchange rate is at point 1 where expected dollar returns on dollar and euro deposits are equal. Exchange rate, Egje Return on dollar deposits 2 Ese Esse Ege Expected return on euro deposits R₂ Rates of return (in dollar terms) Suppose there is a rise in the dollar interest rate. Discuss the effects of this rise in the dollar interest rate on the exchange rate.
Solve all parts
15. If China wanted to maintain both monetary autonomy and a fixed nominal exchange rate in regard to the United States in the long run, (a) the Chinese would want to sell their financial assets. (b) the Chinese would have to want to buy American goods. (c) the price level in China would have to move in tandem with the U.S. price level. (d) the law of one price would have to hold for at least one good. (e) Chinese interest rates would have to move in tandem with U.S. interest rates.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1.Recently, Hong Kong is undergoing several protests against the extradition bills. (Note: define the Hong Kong as a home country and Japan as foreign country.) Explain in words how this political event affects (i) the amount of net exports of Japan, the safe haven country, and (ii) the value Japanese Yen (JPY) relative to other currencies. 2. Thanks to the establishment of Eastern Economic Corridor (EEC), the Thai governments propose to offer tax breaks for certain years to attract foreign companies to construct their production sites. Explain in words how this change in fiscal policy affects the national saving (S), domestic gross investment (I!), net capital outflow (NKO), the real interest rate (?), the real exchange rate, (e") and the trade balance of Thailand.