I need do fast typing clear urjent no chatgpt used i will give 5 upvotes pls full explain with diagram The country of Borduria has vibrant automobile andwhite goods industries.Consequently, it is a large importer of steel. The countryis currently showing inflation at 8%and unemployment at 5%. The current tariff (tax) onsteel imports is 30% and thegovernment of Borduria decides to lower the tariff onsteel imports to 10%. You are theCommerce Minister of Borduria. Write a letter to thePrime Minister (PM) of Borduriaexplaining that you have decided to lower the importtariffs on steel in an effort to controlinflationary tendencies. Start your explanation to thePM with a Phillips curve showing theinitial position and then using the short-run AD/ASframework, show what might happenand why as a result of this policy. Explain all steps (noeconomics shorthand) and then showwhat the Phillips curve might look like after thereduction in the tariff. Show both startingand ending positions of the PC in the same diagram.The final positions/values of theunemployment and inflation rates can be chosen byyou but make sure they are reasonableand make sense (PLEASE DRAW THE DIAGRAM)

Step 1:The Phillips Curve represents the inverse relationship between inflation and unemployment,…

Answered: The country of Borduria has vibrant…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 27P

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XYZ Industries Company operates in Oman and supplies its products to the Omani and local market in addition to the Gulf markets.With the beginning of 2020, the Cocod-19 crisis appeared which affected the economies of all countries around the world. The impact of Cocod-19 on the work of companies varies according to the industrial sector in which the company operates.With the beginning of the year 2021, the government began applying value-added tax ( VAT) , which has a direct impact on the prices of goods and services provided in Oman.Based on what you have studied on the topic of risks and returns in the corporate finance course, answer the following questions: 1- What are the most important types of risks that XYZ Industries Company was exposed to in Oman? (Risks are: default, Inflation, Maturity, Liquidity)2- What are the most important measures that can be taken to reduce these risks?3- What is the potential impact of VAT on the company?
Omani Government has recently introduced 5% VAT on most goods and services. Assuming that Oman has an independent monetary policy, how will VAT influence the interest rates in Oman? (Specify the direction of the interest rate in your answer). answer briefly on not more than 5 lines.
Suppose you have been hired by President Emmanuel Macron of France as an economic policy consultant. In order to finance an increase in unemployment benefits, the French government needs to raise €10 billion in additional tax revenue. President Macron is considering two policies to achieve this goal: a new tax on gasoline or a new tax on bequests (money left to your children or other heirs). Which of these two policies would be the most economically efficient? Why? Explain why the policy you recommended in a.) might be politically unpopular. Dismayed by your assessment, President Macron proposes a third alternative: a broad decrease in current taxes. Explain why this could increase tax revenue for the French government, but it is unlikely to work in practice.
Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an initial investment of S$20,000,000 (Singapore dollars). Kittle Co. managers provide you key information regarding the project. 1. The government in Singapore will tax any remitted earnings at a rate of 10.00%. 2. The subsidiary will remit all of it’s after-tax earnings back to the parent. 3. The forecasted exchange rate of the Singapore dollar over the four-year period is $0.50. 4. The salvage value is S$12,000,000, which will be paid by the Singapore government in exchange for ownership of the subsidiary after four years. 5. The required rate of return is 15.00%. Furthermore, no funds can be remitted from the subsidiary to the parent until the subsidiary is sold for the salvage value at the…
Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an initial investment of S$20,000,000 (Singapore dollars). Kittle Co. managers provide you key information regarding the project. 1. The government in Singapore will tax any remitted earnings at a rate of 10.00%. 2. The subsidiary will remit all of it’s after-tax earnings back to the parent. 3. The forecasted exchange rate of the Singapore dollar over the four-year period is $0.50. 4. The salvage value is S$12,000,000, which will be paid by the Singapore government in exchange for ownership of the subsidiary after four years. 5. The required rate of return is 15.00%. Furthermore, no funds can be remitted from the subsidiary to the parent until the subsidiary is sold for the salvage value at…
General Motors exports cars to Spain but the strong dollar against the euro hurts sales of GM cars in Spain. In the Spanish market, GM faces competition from the Italian and French car makers, such as Fiat and Renault, whose operating currencies are the euro. What kind of measures would you recommend so that GM can maintain its market share in Spain?
Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 3.00 trillions of rupees. Individuals consume: 11.30 trillions of rupees. Individuals save: 5.14 trillions of rupees. Businesses invest: 1.30 trillions of rupees. Foreigners spend: 0.69 trillions of rupees to purchase Pakistani firms. Pakistan imports: 1.92 trillions of rupees. Pakistan exports: 1.31 trillions of rupees. Calculate Pakistan's GDP. Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees, and round to two decimals.
The government of Ghana in an attempt to stimulate the Ghanaian economy after the COVID 19 pandemic has set aside 600 million Ghana cedis as a
Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F$2.00 million (Fijian dollars, F$) worth of imports from Fiji in 90 days. Currently, the spot rate for the Fijian dollar is $0.80 per F$. Suppose that Retrojo negotiates a forward contract with a bank, which commits it to purchasing Fijian dollars at F $2,000,000.00 at $0.80 per Fijian dollar in 90 days. Thus, Retrojo knows with certainty that it will need F$2,000,000.00×$0.80 per Fijian dollars =$1,600,000.00 for this exchange. Assume the Fijian dollar depreciates over this time period to $0.67 per Fijian dollar. If this were the case the outside of the contract only (U.S. dollars) would be needed to exchange for the required F$2,000,000.00.
Suppose that Retrojo Inc. is a U.S. based MNC that will need to purchase F$1.10 million (Fijian dollars, F$) worth of imports from Fiji in 90 days. Currently, the spot rate for the Fijian dollar is $0.53 per F$. Suppose that Retrojo negotiates a forward contract with a bank, which commits it to purchasing Fijian dollars at F$1,100,000.00 at $0.53 per Fijian dollar in 90 days. Thus, Retrojo knows with certainty that it will need F$1,100,000.00 × $0.53 per Fijian dollars = $583,000.00 for this exchange. Assume the Fijian dollar depreciates over this time period to $0.42 per Fijian dollar. If this were the case the, outside of the contract with the bank, only $ (U.S. dollars) would be needed to exchange for the required F$1,100,000.00.
Suppose you work at the FOREX desk of a multinational bank. No particular country is the home country for you as your responsibility is to conduct foreign exchange trade in whichever way is profitable for the bank. Using this as your guideline, consider the following data: S0 = ¥92/US$ S180 = ¥92/US$ IUS = 2% per annum IJapan = 0.09% per annum With a starting amount of US$10 million or its Yen equivalent, can you make a UIA profit? What if a CIA was conducted at F180 of ¥90/US$? What are your observations?
Baltimore, Inc., is a U.S.‑based MNC that obtains 10 percent of its supplies from European manufacturers. Sixty percent of its revenues are due to exports to Europe, where its products are invoiced in euros. Explain how Baltimore can attempt to reduce its economic exposure to exchange rate fluctuations in the euro.

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