Given that Thai roller blade manufacturers located in Thailand have begun targeting the U.S. roller blade market, how do you think Blades’ U.S. sales were affected by the depreciation of the Thai baht? How do you think its exports to Thailand and its imports from Thailand and Japan were affected by the depreciation?
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- Given that Thai roller blade manufacturers located in Thailand have begun targeting the U.S. roller blade market, how do you think Blades’ U.S. sales were affected by the depreciation of the Thai baht? How do you think its exports to Thailand and its imports from Thailand and Japan were affected by the depreciation?
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- Which of the following best represents the primary economic and financial benefit to the U.S. from NAFTA? It led to increased tariffs on U.S. exports to Canada and Mexico. U.S. consumers had access to a wider variety of products. It resulted in the relocation of major U.S. corporations to Europe. The U.S. benefited from low-price manufacturing, low-priced labor, and reduced shipping and logistics costs.Which of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.Recently the British Pound suffered an unexpected depreciation in value. Which of the following actions being considered by Coventry Furniture of London, a purely domestic furniture manufacturer and retailer (based in the UK), would be considered a highly unlikely response to the depreciation of the pound? Coventry might try to raise domestic prices because competing imports are now priced higher in England. Coventry might try to lower domestic prices because competing imports are now priced lower in England. Coventry might choose to maintain its domestic sales prices constant in pound terms. None of these actions are a highly unlikely response.
- QUESTION 1: Which groups benefited most from China imposing an export quota on rare earth metals? Did it give the Chinese domestic manufacturers a significant cost advantage? Did it result in dramatically increased quality and environmental standards? QUESTION 2: Given that 97 percent of rare earth metal production is now done in China, an increase from 27 percent to 97 percent between 1990 and 2010, do you think countries such as Australia, Canada, and the United States should reconsider their environmental restrictions on the production of such metals? QUESTION 3: The restrictions imposed by China on rare earth metals has resulted in some companies (e.g. Toyota, Renault, Tesla) starting to look for alternatives. They plan to use parts that do not include rare earth metals. Is this a good solution?The US government under Mr. Trump imposed tariffs on steel and aluminium imports from China and other countries including the EU, Canada and Mexico. The justification for these tariffs is that they will protect American workers from foreign competition. Would the protection likely to protect American workers? Explain. What are the likely impact of such protectionism?Pulaski Inc. wants to establish a new subsidiary in Colombia that will sell cell phones to Colombian customers and remit earnings back to the U.S. parent. The value of this project will be favorably affected if the value of the peso ____ while it establishes the new subsidiary and ____ when the subsidiary starts operations. appreciates; appreciates depreciates; appreciates appreciates; depreciates depreciates; depreciates
- Which of the following is not a reason for U.S. firms operating in foreign markets? A.Better economic and political environment (in the U.S.) B.Less expensive labor C.Tax incentives D. To achieve international diversificationVitro-X in Malaysia has a subsidiary in Japan. Hence, Vitro-X receives Japanese Yen from the subsidiary, but this has negatively affected company value of Vitro-X, probably because of __________. A. appreciation of the Japanese Yen B. lowering of Japanese interest rates C. depreciation of the Japanese Yen D. weaker Japanese economyJuancho Company, a manufacturing company based in Laguna, Philippines, purchased raw materials from a foreign company denominated in foreign currency. Which of the following is correct? If the foreign currency appreciates, Juancho will recognize foreign exchange loss. O If the foreign currency appreciates, Juancho will recognize foreign exchange gain. O If the foreign currency depreciates, Juancho will recognize foreign exchange loss. Any gain or loss will be deferred until the date of settlement. O No gain nor loss will be recognized in the financial statement.
- Which of the following statements is true about expropriation? Multiple Choice Small firms are more likely targets of expropriation than large firms because more is to be gained by expropriating small firms. Expropriation is least likely to occur in non-Western countries that are poor, relatively unstable, and suspicious of foreign multinationals. Expropriation of foreign enterprises by developing countries were rare in the old days Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation.2. Years ago, an apple producer argued that the United States should enact a tariff, or a tariff, or a tax, on imports of bananas. His reasoning was that "the enormous imports of cheap bananas into the United States tend to curtails the domestic consumption of fresh fruits produced in the United States." (a) Was the apple producer assuming that apples and bananas are substitutes or complements? Briefly explain. (b) If a tariff on bananas acts as an increase in the cost of supplying bananas in the United States, use two demand and supply graphs to show the effects of the apple producer's proposal. (i) One graph should show the effect on the banana market in the United States, and (ii) the other graph should show the effect on the apple market in the United States. Label the change in equilibrium price and quantity in each market and any shifts in the demand and supply curves.Let’s assume the U.S. faces trade-offs between military missiles (MM for Ukraine) and Bridge Repairs (BR in the U.S.). In other words, we are assuming the U.S. can use its scarce, productive resources (land, labor, capital, and entrepreneurship) for the production of military missiles for Ukraine (transfer of resources to Ukraine) or for the repair of bridges in the U.S. (Infrastructure). We are assuming the amount of resources is given, technology is given, and the U.S. is producing using all of its resources which means there are no unemployed resources. MU BR Trade-Off: To produce an additional missile for Ukraine, the opportunity cost is the value of bridge repairs foregone MUs : BRs 0 MUs 140 BRs…