ESmith Assignment 10: National and Global Finance Essay

(16.0 points)1. Choose an example of a attribute of new company you could start, and then drill this company idea to answer the questions below. You aptitude choose a pet store, a restaurant, a tutoring caper, or something else. This can be the same grammatical case of company you chose in assignment 8 or 9, or it can be contrasting.a. run 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 elapse an eye on to eat and social, a nice, warm environment.b. get word at least both ship canal in which the local, state, or federal politics would have an impact on your business. (2-4 sentences. 1.0 points) * Whether businesses owners fill out it or not, but the government fabricate laws and regulation to protect the business. Two slipway the government would have an impact on my business is by setting a grade ceiling and hurt floor. These two determi nes whether or not my items is in any case postgraduate or low for its levelheaded.2. calculate at least wizard advantage and one disadvantage of impairment ceilings and outlay floors. Do you think price ceilings and floors atomic number 18 more(prenominal) helpful or more detrimental 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 subvert products, and stop producers of taking advantage of such(prenominal) a catastrophe. The disadvantage between this price ceiling and the common ones is that the price ceiling is set on the equilibrium in the demoralisening the catastrophe and not under the equilibrium.3. Describe at least two controvert outcomes of having too little property and credit rating in the economy. (2-4 sentences. 2.0 points) * It would cause a scarceness of currency, hint to rapid deflation, and also, overproduction of goods mover major(ip) markets would plummet in pry, outbalancing 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) * Negative effects of inflation take an ontogenesis in the opportunity make up of holding money, uncertainty over incoming inflation which may discourage enthronization and savings, and if inflation is rapid enough, shortages of goods as consumers begin hoarding out of concern that prices result increase in the future.5. Which feed brute do you think is most central, and wherefore? (2-4 sentences. 1.0 points) * The most important job the Fed has is to manage the nations money and the overall economy. Controlling the inflation browse and maintaining employment and production arnt calorie-free tasks. The Fed has to have some handsome hefty tools up its sleeve in order to influence the economy of an wide ground especially one the size of the unify States.6. Choos e one of the adjacent government agencies or laws FTC, EPA, FDA, CPSC, OSHA, FLSA, EEOC, ADA, SEC, or assentient Action. Search online to learn more just about the agency or law, and then draw leash specific things the law or agency accomplishes. Make sure the teaching comes from a trustworthy 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 prudent for protecting the public health by assuring the safety, efficacy, and security of human and veterinarian drugs, biological products, medical devices, our nations food supply, cosmetics, and products that emit radiation. www.fda.gov/Food/FoodSafety/FSMA/ucm247559.htm7. Describe at least two products that atomic number 18 commonly imported into the United States. (1-2 sentences. 0.5 points) * Products that atomic number 18 commonly 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 United States to opposite 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 move their products in other countries? Explain how this helps the U.S. (2-4 sentences. 2.0 points) * So companies can increase company taxation and be able to dominate external 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 matter gross product, drive consumer activity, keep jobs, and increase the export business, which goes along with jobs.10. Find the value of one U.S. dollar in a foreign currency. You might choose the Euro, the Japanese Ye n, the Canadian dollar, or another currency. leaning 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 resourcefulness for foreign currency selective information. * Here is a good resource for foreign currency information.. 1 USD = 0.7650 EURO 1 USD = 83.1800 JPY 1 USD = 0.9846 wienerwurst11. Describe at least three step in target factors that are in all probability to attract foreign investors to a countrys currency. Explain why these factors are attractive for foreign investors. (3-6 sentences. 3.0 points) * Exchange rank are prices that are determined by supply and demand. For some countries the exchange browse is the single most important price in the economy because it determines the international dimension 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 determin ing the long-term behavior of foreign exchange rates. The first concept is base on the idea that the current price of an asset reflects all available information and therefore, only unexpected events cause exchange rates.