You are an IMF official going to a country whose export earnings are not able to pay for imports. The government has requested a loan from the IMF. Which areas would you recommend the government to cut: (1) education, (2) salaries for officials, (3) food subsidies, and/or (4) tax rebates for exporters

Tariffs redistribute income from consumers to domestic producers. True False

As international businesses look to emerging markets for growth opportunities and access to resources, they will evaluate the business environments of the countries under consideration. Argentina is the largest country in South America, and its terrain includes mountains, lakes, glaciers, and grasslands. It is resource rich—producing soybeans, wheat, wine, and beef. It has more arable land per person than all but five nations in the world. Argentina has the world’s third largest shale-oil and gas fields. With a population of more than 45 million and rich natural resources, Argentina might seem to be a desirable market for international businesses. Despite this, Argentina is known as a rich country made poor. Consider these points of interest about Argentina. In 1913, Argentina was the 10th wealthiest country in the world, ahead of Norway, France, Germany, and Japan. Today, it is in 85th place, behind Russia and China, with a per-capita income of $10,000. Demographically, Argentina…

True or False. When we adjust income per capita based on Purchasing Power Parity (PPP), differences in income per capita between rich and poor countries tend to decrease because non-traded goods are cheaper in poorer countries.

How to increase or decrease government spending to achieve trade balance ( NX=0 )

A trade deficit occurs when a country: A) Has higher exports than imports B) Has higher imports than exports C) Implements strict import quotas D) Lowers tariffs on all imports

Why are aircraft one of the United States' greatest exports? The demand for aircraft is high. The US has a great deal of technological knowledge. The American dollar is cheap compared to other currencies.

Trade distortion effects increases estimates of the United States' trade deficit with China. To what degree do you agree or disagree with this statement. Be sure to provide reasons why.

If the United States has been selling more goods in the international  market than it has been buying, this could be for all the following reasons except: foreign goods are often much cheaper The value of the U.S. dollar has fallen substantially The quality of foreign products is similar to that of U.S. products The values of foreign currencies are rising relative to that of the U.S. dollar   Elroy Hatchard is the sole proprietor of a gift shop in a small shopping center. Because he is a sole proprietor, Elroy’s profit from the business is: Totally tax-free Taxed as personal income Not subject to state or local taxes Taxed only when it is distributed to investor   All of the following are normally considered advantages of the corporate form of business organization except: Unlimited liability Perpetual life Ease of ownership change More money for investment                The heavy influence of such federal agencies as the Federal Trade Commission, the Securities and…

Examine the impact of political or economic changes in a specific country on a company's international value chain and recommend strategies for adaptation.