That is, the ability of firms in Australia to compete on the international market for the sale of goods and services. Increased international competitiveness will result in more demand of goods and services from Australian firms as they are cheaper compared elsewhere, resulting in more demand for the AUD thus appreciating the dollar. There, however, can also be a reverse effect. A high Australian dollar will make goods and services purchased from Australia relatively more expensive when compared with other countries offering the same goods/services. An example of this effect in today’s economy is the mining boom in Australia.
In 1848, newly produced gold increased the U.S. money supply. This made U.S. exports more expensive and caused a deficit in the balance of payments. Also, this meant it would raise their discount rates, speed of gold flow, and facilitate a gold outflow. Countries,
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
1). The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will: • Exceed the marginal cost of diamonds but equal to the average total cost of diamonds. • Exceed both the marginal cost and the average total cost of diamonds. • Be equal to the marginal cost of diamonds.
Mining was an important factor in the development of the West during the 1800s. When people got wind of a discovery of gold or silver, they would flock to the area with hopes of striking it rich due to the high value of these minerals. These prospectors would use pan and placer mining to sift the minerals out from streams or the shallow surface of the land. After these shallow resources of the minerals were depleted, commercial mining outfits would come in and extract the gold and silver from deep underground. “The thousands of people who flocked to the mining towns in search of quick wealth and who failed to find it often remained as wage laborers in corporate mines after the boom period” (Brinkley, 2007).
Witte believed the only way to modernise Russia and play catch-up with the West was through State Capitalism (control of the economy by the government). The country needed to raise capital for investment in industry, which he did in several interlinking ways: large foreign loans which brought money into the country; heavy tax and interest rates in Russia which brought more money for the government. While bringing money into the country, Witte protected the small developing industries of Russia by limiting imports (but risked other countries doing the same to Russian goods in retaliation) In 1897, he put Russian currency on Gold Standard. This created financial stability and in turn encouraged huge foreign investment in Russia. Conversely, the higher-value rouble helped increase the prices of goods.
It paved a path that led to the Emerald City, which stood for Washington DC. The gold standard caused deflation in the economy, which hurt farmers. Deflation was good for the banks because the farmers would pay loans back to the banks and they would be worth more money. These symbols were vital to the 1896 election and The Wizard of Oz. The characters in the movie are also based off important people from the 1896 election.
Investors find this information lucrative because the more expendable cash a company has the more likely they are to pay out in dividends for the stock holders.. Liquidity Ratios: Current assets are a business's total current assets divided by its total current liabilities. Total Current Asset / Total Current liabilities 1,971,000 / 116,290 16.949 = 16.9 Current Ratio- 16.9:1 or 17:1 (16.9 to 1 or 17 to
Because these loans are IOUs, they can be offset by printing more money. This gives central banks an unlimited supply of money. Overdoing this will lead to inflation that hurts the economy (Colander, 2010, p. 406). One problem in government accounting is how they classify debt and expenditures. Accounting addresses several ways a business may classify an expenditure and depreciation over time.
When the demand for U.S. dollars increases, the value of the dollar will increase or appreciate (Stone 2008, pp. 685). As a result, U.S. products become more expensive for foriegners causing a reduction in exports and increasing imports. This not only effects the U.S. economy, but also affects the economies in other countries. Monetary policies influence and are influenced by international developments, including exchange rates, and based on these market conditions the U.S. government can make strategic changes to these policies to maintain the country’s economic stability (full employment, stable growth and price stability).