What additional complexities arise when multinational corporations consider capital projects on a global basis?
What will be an ideal response?
Considerations must be given to the impact on projected cash flows from differences in tax laws and tax rates, exchange rate controls and changes, limitations on repatriation of profits, tariffs and quotas on imported products, and special licensing fees. In addition, rates used to discount cash flows back to present values must be adjusted for differences in rates of inflation and taxes, and risks associated with expropriation of assets and political-social instability.
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The current account balance consists of
A) the trade balance plus the services balance. B) net exports of goods and services, minus net unilateral transfers. C) net exports of goods and services, plus net income from abroad, plus net unilateral transfers. D) net exports of goods and services, plus net income from abroad, plus net unilateral transfers, minus the financial account balance.
Which of the following would be a contractionary fiscal policy that would help close an expansionary gap?
a. increase in government purchases b. decrease in taxes c. decrease in government purchases d. none of the above are contractionary fiscal policies
Who among the following would be counted as "unemployed"?
a. Shasta, who is waiting to be recalled to a job from which she has been laid off. b. Karen, who neither has a job nor is looking for one. c. Mary, who worked only 35 hours last week. d. None of the above is correct.
Price fixing is collusive and illegal under U.S. antitrust laws. Predatory pricing, price discrimination, and tying have less obvious effects and are sometimes practiced by non- colluding oligopolists. Describe at least two of these strategies and explain the circumstances under which they raise regulatory concern.
What will be an ideal response?