So each country has different currency, for example country A currency is 2 bills to our United States currency B which equals a dollar. So if we trade with country A we would get more for our dollar then country A would get less for their currency. The factor of inflation is a country that has consistently lower purchasing power like country A. This can cause higher interest rates for that country. Another influence is what they hold in a current account could be considered a deficit which means the country is spending more on foreign trade than it is receiving.
One way a country can show it has a good economy is by considering the country’s GDP (PPP) per capita. Seeing as USA is the only current superpower in the world, taking their GDP (PPP) of $54,800, considerably more than certain other countries such as China ($12,900) and Russia ($24,800). However, it must be considered that GDP (PPP) per capita is not entirely accurate in measuring the strength of a country's economy as it hides the gaps in wealth in the population. Consequently, A country with a few billionaires and the rest living in poverty would probably have a pretty good average. This would not be considered a superpower due to all the people living in poverty.
What are the weak spots in the northeast district's performance? Refer to Tables 5 and 6. The northeast district has a weak spot because in order to make a greater gross profit they have to have a greater amount of sales then the north-central district. In order to make a $520 profit district C for the northeast would have to have $1,620 in sales. In the same district C the north-central would only have to have $1,304 in sales to have a $510 profit.
et powerECO204: Homework Assignment 3 1. True, False, Uncertain a. A firm that enjoys economic rents earns higher economic profits than other firms without the economic rents. b. Relative to the perfectly competitive equilibrium, the equilibrium outcome for a market dominated by a monopsonist will be higher prices and lower levels of good demanded.
• These all factors are affected by high inequality. • High inequality also reduces people accessibility towards resources even it threatens the political condition of the economy, discourages the behavior of people towards individuals or enterprises and this become the hinder towards economic growth. • If we talk about countries which have high growth but low living standard then I will prefer countries like India and China in both the countries there growth rate is rising but there standard of living is not that much high. • GNP is the value of product and services by a labor and property which is supplied by the people of that country and it is calculated in one year but it is not considered the way on which the wealth is distributed .in case of underdeveloped countries only one percent of the population is maybe controlling 80 percent wealth. • Economy may be expand and by this GNP increase at high rate but the people may not experience any of the change or rise in their living
Nebraska Vs. Maryland. Based on the census data, Maryland is a bigger state than Nebraska with the difference of 4, 029, 038 in their population, however the population listed, as white only Nebraska’s population is higher then Maryland’s. Both states being bellow the poverty rate, Nebraska’s rate is a liltle higher than Maryland with the difference of
However, because foreigners are willing to work for less money, it gives them a more adept position in the American economy and working force, regardless of their education. Therefore, the abundance of labor creates a shortage of jobs which in turn leads to a “rough estimate that suggested that as many as 42 million jobs, or nearly one-third of the nation's total, were susceptible to offshoring” (Gosselin, pg 2). In essence, it doesn’t matter how much you know, but rather how little you will work for. The Social Problems textbook states that “the globalization of the economy is not a neutral process. Decisions are based on what will maximize profits, thus serving the owners of capital, and not necessarily workers or the communities where factories are located” (Social Problems, pg 427).
When comparing these aspects from foreign countries to aspects of the United States, one side is clearly more preferable. If one is looking for a prevailing quality of life, the United States is the inferior one choice when compared to other nations. When evaluating quality of life it is difficult to clearly have set criteria to base it off of. If evaluating quality of life, wealth of the nation does not overshadow other aspects for this concept. For example, “The main reason the United States if richer is because...they work about 20% more hours per year than Europeans (newfederalist).” Based off of this study, we see that while Americans are wealthier, they are working a lot more strenuously to make this money.
PPP indicates that the same product should have the same price (law of one price). Therefore, Chinese yuan is undervalued (respect to the dollar). The exchange rate should be higher @ $0.256 per yuan ($3.71/14.5Yuan = $0.256) The yuan was undervalued with respect to the dollar by 41.37%: ($0.15/$0.256)-1 =41.37%. Q6) Answer:4 Q7) Answer:4 Q8) Answer:2 Q9) Answer:1 Q10) Discuss why it is often asserted that exporters suffer when their home currencies appreciate in real term against foreign currencies and prosper when their home currencies depreciate in real terms. Appreciation in domestic currency for exporters implies that their currency is too strong relative to a foreign currency; hence this will make their exports too expensive.
Obviously, this is a large amount of money, but it is difficult to know if could actually be used as a proof to state the existence of a compensation culture, if it is not compared with that of other countries. A separate study is the one carried out by the Task Force in 2004. The Government’s Better Regulation Task Force states that the UK’S expenditure for tort claims is 0,6 % of GDP: only Denmark spends less. This percentage, if it is compared with the previous one, is much lower. It is on this basis that the Task Force report denies the existence of a compensation culture, calling it even as a “urban myth”.