Suppose that global investors fear a less friendly environment in Argentina in the face of elevated government default risk. Explain how this will affect capital investment, real GDP growth, and the current (trade) account in Argentina. What, if any, are the tradeoffs?
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- Suppose that global investors fear a less friendly environment in Argentina in the face of elevated government default risk. Explain how this will affect capital investment, real
GDP growth, and the current (trade) account in Argentina. What, if any, are the tradeoffs?
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- Part 1 - What kinds of specific actions has the IMF taken in order to address economic or financial crises of your focus country? What is an example of any relationship or interaction that your focus country has had with the IMF? (My focus country Part 2 – What are 3 examples of FDI news related to your focus country? (this could include information about investment promotion activity that your country sponsors/promotes)Country: Brazil Part 1 - What kinds of specific actions has the IMF taken in order to address economic or financial crises of your focus country? What is an example of any relationship or interaction that your focus country has had with the IMF? Part 2 – What are 3 examples of FDI news related to your focus country? (this could include information about investment promotion activity that your country sponsors/promotes) Part 3 – Please post images related to the following topics (include some verbiage explaining them) -FDI -foreign exchange market -regional economic integrationExplain four factors why China is among the huge recipients of foreign direct investment.
- Assume that you are a senior manager in a U.S. automobile company considering investing in production facilities in China, Russia or Germany. These facilities will serve the local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Which country seems to be the most attractive target for foreign direct investment? Why?If current trends continue, China may be the world's largest economy by 2030. Discuss the possible implications of such a development for (a) the world trading system, (b) the world monetary systems, (b) the world monetary system, (c) the business strategy of today's European and US-based global corporations, and (d) global commodity pricesLet’s assume that some foreign countries start to subsidize investment by instituting an investmenttax credit.a) What happens to world investment demand as a function of the world interest rate?b) What happens to the world interest rate?c) What happens to investment in our small open economy?d) What happens to our trade balance?e) What happens to our real exchange rate?
- As international businesses look to emerging markets for growth opportunities and access to resources, they will evaluate the business environments of the countries under consideration. Argentina is the largest country in South America, and its terrain includes mountains, lakes, glaciers, and grasslands. It is resource rich—producing soybeans, wheat, wine, and beef. It has more arable land per person than all but five nations in the world. Argentina has the world’s third largest shale-oil and gas fields. With a population of more than 45 million and rich natural resources, Argentina might seem to be a desirable market for international businesses. Despite this, Argentina is known as a rich country made poor. Consider these points of interest about Argentina. In 1913, Argentina was the 10th wealthiest country in the world, ahead of Norway, France, Germany, and Japan. Today, it is in 85th place, behind Russia and China, with a per-capita income of $10,000. Demographically, Argentina…What are the benefits and costs associated with foreign portfolio investment (FPI)?Based on your own observation, give the possible sources of political risk in the Philippines particularly to foreign Investors?
- A government official announces a new policy. The country wishes to eliminate its trade deficit, but will strongly encourage financial investment from foreign firms. Explain why such a statement is self- contradictory.On what two factors does the return on a foreign investment depend?In 1992, 18.6 million Canadians visited the United States, but only 11.8 million U.S. residents visited Canada. By 2002, roles had been reversed: more U.S. residents visited Canada than vice versa. Why did the tourism reverse direction? Canada didn’t get any warmer from 1992 to 2002 – but it did get cheaper. The reason is a large change in the exchange rate: in 1992 Canadian dollar was worth $0.80, but by 2002 it had fallen in the value by 20% to about $0.65. This means that Canadian goods and services, particularly hotel rooms and meals, were about 20% cheaper for Americans in 2002 compared to 1992. American vacations had become 20% more expensive for Canadians. Canadians responded by vacationing in their own country or in other parts of the world. Foreign travel is an example of a good that has a high price elasticity of demand: elasticity=4.1. One reason is that foreign travel is a luxury good for most people – you may regret not going to Paris this year, but you can live…