Category: Economics

Learning goal: I’m working on a economics writing question and need explanation and answer to help me learn.
In what ways do government policies, such as taxation and subsidies, influence market behavior and economic efficiency, and how can these policies be designed to balance the goals of economic growth, income distribution, and environmental sustainability?
Requirements: 600 words

Now that we have examined the motivations, benefits, and issues surrounding so-called “free trade,” it’s time to ask the question: “Free from what?” Module 4 explores attempts by governments to constrain trade. Not surprisingly, we will find that economists are generally skeptical about the specific benefits of tariffs, quotas, and export controls and seek to remove or minimize constraints on trade in most instances—but not necessarily all.
Discussion Requirement

Trade barriers
Select a developed country that has implemented a tariff, and a developing country that manufactures products that are impacted by that same tariff. The current US and China tariff “war” cannot be used since these are the two largest economies in the world. Investigate the economic impact of the trade barrier on the developing country and the developed country. Would you recommend that the developed country eliminate the tariff? Explain your reasoning.
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 600 word limit.
Learning Outcomes
Differentiate the different types of tariff and non-tariff trade barriers.
Judge the welfare effects of tariff trade barriers.
Readings
Required:
Chapter 4 in International Economics
Hoekman, B., & Shepherd, B. (2021). Services trade policies and economic integration: new evidence for developing countries. World Trade Review, 20(1), 115-134. Retrieved from https://www.cambridge.org/core/journals/world-trade-review/article/services-trade-policies-and-economic-integration-new-evidence-for-developing-countries/04BA024C0F1516A44099FC2856CE4602
Recommended:
Chapter 4 PowerPoint slides – International Economics
Krist, W. (2023). Chapter 3: Trade Agreements and Economic Theory. Wilson Center. Retrieved October 11, 2023, from https://www.wilsoncenter.org/chapter-3-trade-agreements-and-economic-theory

Learning goal: I’m working on a economics writing question and need explanation and answer to help me learn.
In what ways do government policies, such as taxation and subsidies, influence market behavior and economic efficiency, and how can these policies be designed to balance the goals of economic growth, income distribution, and environmental sustainability?
Requirements: 600 words

Now that we have examined the motivations, benefits, and issues surrounding so-called “free trade,” it’s time to ask the question: “Free from what?” Module 4 explores attempts by governments to constrain trade. Not surprisingly, we will find that economists are generally skeptical about the specific benefits of tariffs, quotas, and export controls and seek to remove or minimize constraints on trade in most instances—but not necessarily all.
Discussion Requirement

Trade barriers
Select a developed country that has implemented a tariff, and a developing country that manufactures products that are impacted by that same tariff. The current US and China tariff “war” cannot be used since these are the two largest economies in the world. Investigate the economic impact of the trade barrier on the developing country and the developed country. Would you recommend that the developed country eliminate the tariff? Explain your reasoning.
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 600 word limit.
Learning Outcomes
Differentiate the different types of tariff and non-tariff trade barriers.
Judge the welfare effects of tariff trade barriers.
Readings
Required:
Chapter 4 in International Economics
Hoekman, B., & Shepherd, B. (2021). Services trade policies and economic integration: new evidence for developing countries. World Trade Review, 20(1), 115-134. Retrieved from https://www.cambridge.org/core/journals/world-trade-review/article/services-trade-policies-and-economic-integration-new-evidence-for-developing-countries/04BA024C0F1516A44099FC2856CE4602
Recommended:
Chapter 4 PowerPoint slides – International Economics
Krist, W. (2023). Chapter 3: Trade Agreements and Economic Theory. Wilson Center. Retrieved October 11, 2023, from https://www.wilsoncenter.org/chapter-3-trade-agreements-and-economic-theory

Learning goal: I’m working on a economics writing question and need explanation and answer to help me learn.
In what ways do government policies, such as taxation and subsidies, influence market behavior and economic efficiency, and how can these policies be designed to balance the goals of economic growth, income distribution, and environmental sustainability?
Requirements: 600 words

Recession, Inflation, Unemployment, Growth,….what does it all mean? Who Cares? Do You?
Ends Sep 29
Must post first.
NOTE: This is an unintended duplication of the previous discussion topic. I will revise this and bring it to what it was supposed to be. For now, please do no participate in this discussion assignment. Concentrate on the “it’s the economy, stupid” forum. Thanks and I do apologize for this oversight.
We are in the midst of a historic election–a former president running against a sitting president.
In “your opinion,” what is the most important issue in the upcoming election? What do “you” pay the most attention to when hearing each of the two candidates talk?
As far as the economy is concerned, please select two macroeconomic valuables which you think are the best indicators of “your concerns,” and explain how you think each of the two presidential candidates has addressed them and/or planning to address them.
Please be respectful of everyone’s opinion. We can disagree and that is part of the beauty of the United States political and social structure. Respecting each others’ opinions, even when we do not agree with them, is also part of the beauty.
Be respectful.
Voice your opinion and then respond to others, in a respectful manner. If you agree with one of your peers, expand and support their comments even more. If you don’t agree with someone’s opinion, explain why and provide alternatives.
In all cases, remember that your opinion is important but it is “your opinion.” Support yourself with research and cite sources that support your comments. Always cite these sources and never copy and paste.

Recession, Inflation, Unemployment, Growth,….what does it all mean? Who Cares? Do You?
Ends Sep 29
Must post first.
NOTE: This is an unintended duplication of the previous discussion topic. I will revise this and bring it to what it was supposed to be. For now, please do no participate in this discussion assignment. Concentrate on the “it’s the economy, stupid” forum. Thanks and I do apologize for this oversight.
We are in the midst of a historic election–a former president running against a sitting president.
In “your opinion,” what is the most important issue in the upcoming election? What do “you” pay the most attention to when hearing each of the two candidates talk?
As far as the economy is concerned, please select two macroeconomic valuables which you think are the best indicators of “your concerns,” and explain how you think each of the two presidential candidates has addressed them and/or planning to address them.
Please be respectful of everyone’s opinion. We can disagree and that is part of the beauty of the United States political and social structure. Respecting each others’ opinions, even when we do not agree with them, is also part of the beauty.
Be respectful.
Voice your opinion and then respond to others, in a respectful manner. If you agree with one of your peers, expand and support their comments even more. If you don’t agree with someone’s opinion, explain why and provide alternatives.
In all cases, remember that your opinion is important but it is “your opinion.” Support yourself with research and cite sources that support your comments. Always cite these sources and never copy and paste.

Hartford Mining has 90 million shares that are currently trading for $2 per share and $160 million worth of debt. The debt is risk free and has an interest rate of 4%, and the expected return of Hartford stock is 11%. Suppose a mining strike causes the price of Hartford stock to fall 25% to $1.50 per share. The value of the risk-free debt is unchanged. Assuming there are no taxes and the risk (unlevered beta) of Hartford’s assets is unchanged, what happens to Hartford’s equity cost of capital?
Hubbard Industries is an all-equity firm whose shares have an expected return of 10.9%. Hubbard does a leveraged recapitalization by issuing debt and repurchasing stock until its debt-equity ratio is 0.66. Due to the increased risk, shareholders now expect a return of 17.1%. Assuming there are no taxes and Hubbard’s debt is risk-free, what is the interest rate on the debt?
Global Pistons (GP) has common stock with a market value of $470 million and debt with a value of $299 million. Investors expect a 13% return on the stock and a 5% return on the debt. Assume perfect capital markets.Suppose GP issues $299 million of new stock to buy back the debt. What is the expected return of the stock after this transaction?
Suppose instead GP issues $71 million of new debt to repurchase stock.
Suppose Alpha Industries and Omega Technology have identical assets that generate identical cash flows. Alpha Industries is an all-equity firm, with 14 million shares outstanding that trade for a price of $24 per share. Omega Technology has 22 million shares outstanding as well as debt of $100 million.According to MM Proposition I, what is the stock price for Omega Technology?
Suppose Omega Technology stock currently trades for $15 per share. What arbitrage opportunity is available? What assumptions are necessary to exploit this opportunity?
Wolfrum Technology (WT) has no debt. Its assets will be worth $444 million in one year if the economy is strong, but only $226 million in one year if the economy is weak. Both events are equally likely. The market value today of its assets is $257 million.What is the expected return of WT stock without leverage?
Suppose the risk-free interest rate is 5%. If WT borrows $52 million today at this rate and uses the proceeds to buy back its equity, what will be the market value of its equity just after this transaction, according to MM?
What is the expected return of WT stock after the transaction in part (b)?

If the risk of the debt does not change, what is the expected return of the stock after this transaction?
ii. If the risk of the debt increases, would the expected return of the stock be higher or lower than in part (i)?

Select a country of your choice (other than Saudi Arabia) and discuss its comparative advantage. What are the sources and the challenges?
What is the role of the government? What policies should the government implement to enhance the comparative advantage?
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 500 word limit.

please only accept if you have prior knowledge the short answer questions only should be 3 to 4 sentences