Economics Homework Solutions

Critique and Explain using economic tools

Using comparative statistics tools, what impacts can be expected from open-market importing of prescription drugs from Canada and EEC? [Statute approved by the U.S. House in Congress, has the prospect of becoming law.]

Use economic tools to critique and explain.

One of the more pressing issues of world population concerns those numbers not being much of a viable labor force today, for 2010 and beyond. If that is the case, the demand for labor is really segmented into (1) healthy individuals with market skills versus (2) the rest of the population. Explain this concept/idea.

Indonesian Case Study 1 of 3

As discussed, please find question 1 below. 1. Identify and assess the importance of the non-market factors that have influenced the operation of Lenzing AG's joint venture (SPV) in Indonesia.

Indonesian Case Study Question 2

2. What have been the implications for the business environment facing foreign investors of measures taken by the Indonesian government since the onset of the East Asian financial crisis in 1997?

Indonesian Case Study Question 3

3. In 2002, would you have given your unqualified support to a proposal to expand production of SPV in Indonesia? If not, why not? Moreover, are there circumstances under which you would have supported such a proposal? NOTE: ALTHOUGH I HAVE INDICATED 1 DAY ON THE DEADLINE, IN REALITY, I MUST HAVE RESPONSES BACK WITHIN 18 HOURS ...continues

covered interest arbitrage

HJ, an abitrager with Bank of Montreal, faces the following CAD/USD prices; Spot: CAD 1.49/USD 6M Forward: CAD 1.51/USD 6M CAD interest rate 7.5% per annum 6M USD interest rate 5.0% p.a. H.J is authorized to use CAD20,000,000 or its USD equivalent. The ending profit, if any, should be realized in CAD. How can he complete ...continues

Nominal exchange rates, relative PPP , real exchange rate

One year ago Polish zloty was PLN 3.8000/USD. Since then the sloty has fallen 14% against the dollar. Price levels in the US have not changed, but Polish price has gone up 7% -what is the nominal exchange rate today? -what should be the exchange rate today, based on relative PPP and assuming last year was normal? -Did the z ...continues

spot-forward exchange rates

A FX dealer in London normally quotes spot, 1M, 3M and 6M forward. When you ask over the phone for current quotes for YEN/USD you hear "111.43 to 51, 52 to 48, 150 to 144, 337 to 205" a)what would you receive in USD if you sold YEN 300,000,000 spot? b)what would it cost you to purchase YEN 400,000,000 forward 3M with USD? Whe ...continues

Interest on Eurodollar loan

A US company CTM borrows $1,500,000 at LIBOR + 125bp p.a. on a 6M rollover basis from a London bank. If 6M LIBOR is 4 1/2% over the 1st 6M interval and 5 3/8% over the 2nd 6M interval, how much will CTM pay in interest over the 1st year of its Eurodollar loan?

forex market

A 3 * 9 FRA has an agreement rate of 4.75%. You believe 6M libor in 3M will be 5.125%. You decide to take a speculative position in a FRA with a $1,000,000 notional value. There are 183 days in the FRA period. Determine whether you should buy or sell the FRA and what your expected profit will be if your forecast is correct a ...continues

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