ESmith Assignment 10: National and Global Finance Essay

(16.0 points)1. remove an grapheme of a shell of new teleph angiotensin-converting enzymer you could start, and then use this company root to answer the questions be let loose. You mightiness choose a pet store, a restaurant, a tutoring business, or aboutthing else. This can be the same type of company you chose in assignment 8 or 9, or it can be different.a. Describe 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 shopping center people come to eat and social, a nice, warm environment.b. Describe at to the lowest degree(prenominal) devil ways in which the local, state, or federal political science would fetch an move on your business. (2-4 sentences. 1.0 points) * Whether businesses owners know it or non, save the government create laws and regulation to shelter the business. Two ways the government would fix an impact on my business is by setting a c harge pileus and monetary value floor. These both determines whether or non my items is too high or low for its good.2. Describe at least one advantage and one loss of price ceilings and price floors. Do you destine price ceilings and floors ar more helpful or more harmful to consumers and the deliverance? relieve. (2-4 sentences. 1.0 points) * ane advantage of price ceilings is that it helps the consumers to have a chance to buy increases, and stop producers of pickings advantage of such a catastrophe. The disadvantage between this price ceiling and the common land ones is that the price ceiling is set on the equilibrium before the catastrophe and not under the equilibrium.3. Describe at least two negative step to the forecomes of having too brusque coin and credit in the economy. (2-4 sentences. 2.0 points) * It would display case a scarcity of money, leading to fast deflation, and also, over end product of goods means major markets would fatten up in value, outb alancing demand,leading to major losings 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 effectuate of inflation include an attach in the opportunity cost of holding money, scruple over future inflation which whitethorn discourage investment and savings, and if inflation is rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future.5. Which Fed tool do you think is more or less fundamental, and why? (2-4 sentences. 1.0 points) * The most exclusively important(p) job the Fed has is to manage the earths money and the overall economy. unequivocal the inflation cast and maintaining employment and production argonnt easy tasks. The Fed has to have some pretty hefty tools up its sleeve in golf-club to lick the economy of an entire country specially one the size of the United States.6. Choose one of the following gov ernment agencies or laws FTC, EPA, FDA, CPSC, OSHA, FLSA, EEOC, ADA, SEC, or Affirmative Action. Search online to uplift more about the agency or law, and then describe three ad hoc things the law or agency accomplishes. cook up sure the information comes from a authorized website. Include a link to the website in your answer. (3-6 sentences. 1.5 points) * The Food and Drug Administration (FDA) is a U.S. agency responsible for protecting the macrocosm health by assuring the safety, efficacy, and credentials of human and veterinary drugs, biological products, checkup devices, our nations food supply, cosmetics, and products that blow over radiation. www.fda.gov/Food/FoodSafety/FSMA/ucm247559.htm7. Describe at least two products that be usually trade into the United States. (1-2 sentences. 0.5 points) * Products that are commonly import 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 United States to another(prenominal) 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 sell 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 up to(p) 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 keep its base in the US, increase the national gross product, elbow grease consumer activity, keep jobs, and increase the export business, which goes on with jobs.10. Find the value of one U.S. long horse in a orthogonal cash. You might choose the Euro, the Japanese Yen, the Canadian dollar, or another currency. List the type 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 imagination for strange currency information. * Here is a good resource for overseas currency information.. 1 USD = 0.7650 EURO 1 USD = 83.1800 JPY 1 USD = 0.9846 CAD11. Describe at least three exchange rate factors that are likely 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 exchange rate is the single most important price in the economy because it determines the international balance of payments.Although no toughie has been consistent in predicting short-term foreign exchange rate behavior, there are several major concepts that play a role in determining the long behavior of foreign exchange rates. Th e source concept is based on the melodic theme that the current price of an asset reflects all available information and therefore, only unhoped-for events cause exchange rates.