<span>The options attached to the question above are given below:</span>
<span>A. </span>The culture of the host country is likely to be
much more individualistic than U.S. culture is.
B. The manager will have greater difficulty finding
educated workers in the host country than in the United States.
C. The manager may not be familiar with the host country’s
language.
D. The host country will likely tax a larger
percentage of the manager’s income than the United States would.
E. The host country will likely have few
protections for its workers.
ANSWER
The correct option is D.
A socialist system is a type of economic system in which the factors of production are jointly owned by all the citizens and production affair is regulated by the government. Such a country does not encourage individuals to operate personal business. Thus, such a country will lay high tax on the income of the manager in order to discourage him from selling his machine in their country.
Answer:
$5, 200 bushels of wheat
Explanation:
From the diagram the price support was at $6 per bushel, however if the government removes the price support or if there was no price support, then the price of the wheat will be $5 for a bushel. And in order to maintain the price support, from the diagram below, it is expected that the government would have to purchase 200 bushels of wheat.
Answer:
International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.
Explanation:
A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.
Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.
The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.
Answer:
12 weeks
Explanation:
The computation of the needs period is shown below":
= Number of weeks inventory counts once + number of order cycles takes + number of the week taken for arrive
= 4 weeks + 2 weeks + 6 weeks
= 12 weeks
We simply added the total number of weeks that is mentioned in the question so that the needs period could be computed
Interest rate risk
Interest rate risk is the risk that arises for fixed-rate investments from fluctuating interest rates. How much interest rate risk a fixed-rate investment has depends on how sensitive its price is to interest rate changes in the market.
