ESmith Assignment 10: National and Global Finance Essay

(16.0 points)1. Choose an physical exertion of a type of bracing partnership you could start, and and so use this company idea to answer the questions below. You expertness choose a pet store, a restaurant, a tutoring championship, or whateverthing else. This hobo be the same type of company you chose in assignment 8 or 9, or it can be different.a. severalise the type of stemma you chose. (1-2 sentences. 0.5 points) * The type of business I would start would be for family or friends gatherings. This business would be place people come to eat and social, a nice, change environment.b. Describe at to the lowest degree two shipway in which the local, state, or federal government would have an impact on your business. (2-4 sentences. 1.0 points) * Whether businesses owners know it or non, but the government create laws and regulation to protect the business. Two ways the government would have an impact on my business is by backdrop a damage hood and price floor. These bot h determines whether or not my items is too high or low for its skinny.2. Describe at to the lowest degree one advantage and one disadvantage of price ceilings and price floors. Do you designate price ceilings and floors atomic number 18 more than helpful or more harmful to consumers and the economy? Explain. (2-4 sentences. 1.0 points) * One advantage of price ceilings is that it helps the consumers to have a chance to buy products, and stop producers of taking advantage of such a catastrophe. The disadvantage between this price ceiling and the common ones is that the price ceiling is set on the equilibrium before the catastrophe and not under(a) the equilibrium.3. Describe at least two blackball outcomes of having too scant(p) money and credit in the economy. (2-4 sentences. 2.0 points) * It would constitute a scarcity of currency, lede(p) to rapid deflation, and too, overproduction of goods means major markets would plummet in value, outbalancing demand,leading to ma jor losses for the producers.4. Describe at least two negative outcomes of having too much money and credit in the economy. (2-4 sentences. 2.0 points) * Negative cause of inflation include an increase in the opportunity cost of retentivity money, uncertainty over future inflation which may discourage enthronization and savings, and if inflation is rapid enough, shortages of goods as consumers begin hoarding out of advert that prices will increase in the future.5. Which Fed tool do you think is most important, and wherefore? (2-4 sentences. 1.0 points) * The most important job the Fed has is to deliver the goods the nations money and the overall economy. Controlling the inflation pasture and maintaining employment and production arent easy tasks. The Fed has to have some pretty hefty tools up its sleeve in pose to fix the economy of an entire country especially one the size of the get together States.6. Choose one of the following government agencies or laws FTC, EPA, FDA , CPSC, OSHA, FLSA, EEOC, ADA, SEC, or affirmative Action. Search online to learn more about the agency or law, and then describe three specific things the law or agency accomplishes. accommodate sure the information comes from a trustworthy website. Include a standoff to the website in your answer. (3-6 sentences. 1.5 points) * The Food and Drug Administration (FDA) is a U.S. agency obligated for protecting the public health by assuring the safety, efficacy, and security of human being and veterinary drugs, biological products, medical devices, our nations food supply, cosmetics, and products that fling radiation. www.fda.gov/Food/FoodSafety/FSMA/ucm247559.htm7. Describe at least two products that are ordinarily imported into the linked States. (1-2 sentences. 0.5 points) * Products that are normally imported in the United States are oil, cars, and clothes. These products are very important to humanity.8. Describe at least two products that are commonly exported from the Uni ted States to other countries. (1-2 sentences. 0.5 points) * Products that are commonly exported from the United States are things such as medicines,aircrafts, and cars. These are products are also important to humanity of different countries.9. Why does the U.S. government encourage U.S. companies to dispense their products in other countries? Explain how this helps the U.S. (2-4 sentences. 2.0 points) * So companies can increase company revenue and be able to dominate international markets in order to establish more stores and spread product around. A good example is McDonalds, they are everywhere. This helps the US because in revenue allows a company to admit its base in the US, increase the national gross product, drive consumer activity, confirm jobs, and increase the export business, which goes along with jobs.10. Find the value of one U.S. dollar bill in a foreign currency. You might choose the Euro, the Japanese Yen, the Canadian dollar, or another currency. List the typ e of currency and the current value of the U.S. dollar in that country. (1.0 points) TIP http//www.google.com/finance/converter is a good option for foreign currency information. * Here is a good resource for foreign currency information.. 1 USD = 0.7650 EURO 1 USD = 83.1800 JPY 1 USD = 0.9846 CAD11. Describe at least three rally rate factors that are promising to attract foreign investors to a countrys currency. Explain why these factors are attractive for foreign investors. (3-6 sentences. 3.0 points) * Exchange rates are prices that are determined by supply and demand. For some countries the trade rate is the genius most important price in the economy because it determines the international agreement of payments.Although no model has been consistent in predicting short-term foreign exchange rate behavior, there are several major concepts that play a role in determining the long-term behavior of foreign exchange rates. The first concept is based on the idea that the curren t price of an asset reflects all available information and therefore, only unexpected events cause exchange rates.