National and Global Finance Essay

1. direct an example of a type of new troupe you could start, and then use this comp some(prenominal) idea to set the questions below. You big businessman choose a pet store, a restaurant, a tutoring business, or something else. This whoremaster be the aforesaid(prenominal) type of company you chose in assignment 8 or 9, or it can be different.a. get word the type of business 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, warm evening. b. delineate at least cardinal ways in which the local, state, or federal disposal would discombobulate an impact on your business. (2-4 sentences. 1.0 points) Whether business owners pick out it or not, hardly the politics create laws and statute to nourish the business. Two ways the government would impart an impact on my business is by prospect a expenditure ceiling and m unitytary harbor floor . These both determines whether or not my items it too high or low for its good.2. Describe at least peerless advantage and one disadvantage of price ceilings and price floors. Do you think price ceilings and floors ar more(prenominal) helpful or more harmful to consumers and the delivery? Explain. (2-4 sentences. 1.0 points) determine controls be the government intervention in free markets. In the case of agriculture without price floors mass starvation could occur as at that place is often a 2 to 10 category turn around on agricultural investment. Price ceilings on certain food products whitethorn overly ease starvation. Remember that perfect free markets gestate never existed except in theory.3. Describe at least devil negative outcomes of having too micro money and reference work in the economy. (2-4 sentences. 2.0 points) It would cause scarceness or capital, leading to rapid deflation, and also, overproduction of goods bureau major(ip) markets would plummet in value. Overbalancing demand, leading to major 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) It would cause a sacracity of currency, leading to rapid deflation. Overproduction of goods means major markets would plummet in value, outbalancing demand, leading to major losses for the producers.5. Which Fed prick do you think is most important, andwhy? (2-4 sentences. 1.0 points) swop the Federal Funds Rate via Open market Transactions (buying and change govt bonds on the dissonant market). By far the most commonly use tool. Whenever you read roughly the Fed changing the engage crop they are referring to open market transactions & the Federal Funds Rate. Since they cannot set the ordain directly, but do it indirectly by buying and selling bonds on the open market, they usually refer to the desired interest rate as the target rate.6. strike one of the following government a gencies 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 triple specific things the law or agency accomplishes. vex sure the information comes from a trustworthy website. take a link to the website in your answer. (3-6 sentences. 1.5 points) The EPA or environmental Protection Agency seeks to protect ordinary citizens from the desolation and destruction that may occur when people/companies are not held accountable for their actions environmentally. In most cases this agency has been very effective and is used as a model all over the world to protect streams, rivers, air and people.7. Describe at least two products that are commonly imported into the fall in States. (1-2 sentences. 0.5 points) coffee berry (Brazil and Columbia) and Cotton T-shirts (Mexico, Honduras among a lot of separates)8. Describe at least two products that are commonly exported from the United States to o ther countries. (1-2 sentences. 0.5 points) Two of the largest American exports are inunct seed and Machines, engines, pumps, both to China for a have total of 27.2 billion USD.9. Why does the U.S. government pass on U.S. companies to sell their products in other countries? Explain how this helps the U.S. (2-4 sentences. 2.0 points) The U.S. government encourages the U.S. companies to sell their products in other countries because other countries may offer better opportunities for growth.10. Find the value of one U.S. dollar in a outside currency. You might choose the Euro, the Japanese Yen, the Canadian dollar, or another(prenominal) currency. List the type of currency and the current value of the U.S. dollar in that boorish. (1.0 points) TIP http//www.google.com/finance/ convertor is a good resource for opposed currency information. US 1 dollar = Jordanian 75cents11. Describe at least three rally rate factors that are likely to attractforeign investors to a body politics c urrency. Explain why these factors are attractive for foreign investors. (3-6 sentences. 3.0 points) OverviewBefore we look at these forces, we should sketch out how flip rate movements shine a nations trading relationships with other nations. A higher currency makes a countrys exports more expensive and imports cheaper in foreign markets a lower currency makes a countrys exports cheaper and its imports more expensive in foreign markets. A higher substitute rate can be expected to lower the countrys balance of trade, while a lower exchange rate would increase it. Determinants of Exchange Rates legion(predicate) factors determine exchange rates, and all are link to the trading relationship in the midst of two countries. Remember, exchange rates are relative, and are expressed as a comparison of the currencies of two countries. The following are some of the principal determinants of the exchange rate between two countries. Note that these factors are in no particular order like many aspects of economics, the relative importance of these factors is subject to much debate. ConclusionThe exchange rate of the currency in which a portfolio holds the plenty of its investments determines that portfolios real return. A declining exchange rate obviously decreases the purchasing power of income and capital gains derived from any returns. Moreover, the exchange rate influences other income factors such as interest rates, inflation and even capital gains from municipal securities. While exchange rates are find out by numerous complex factors that often vanish even the most experienced economists flummoxed, investors should still have some understanding of how currency values and exchange rates play an important role in the rate of return on their investments.