Economics of OPEC

I have a small problem with homework in defining OPEC (other than it is a cartel) 1. Discuss the economic purpose of OPEC. 2. What has happened to oil prices over the past five years? (from economic point of view) 3. Based on your answers to the above questions, which actions you think OPEC will take over the next 1-5 years? Thanks

International Trade Relation

P.2 The company you work for is expanding its business and would like to begin to trade with another country. Go to 2003 National Trade Estimate Report on Foreign Trade Barriers for specific country information. The URL for this link is: http://www.ustr.gov/assets/Document_Library/Reports_Publications/ 2004/2004_National_Trade_Estimate/2004_NTE_Report/asset_upload_file231_4191.pdf Choose one country for analysis. What type of trade restrictions does this country use? Who will benefit from these restrictions? Who might lose?

International Trade Relation

P.1 As an international economist you have been asked to prepare a short speech which answers the following questions: 1. How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns? 2. The Heckscher-Ohlin theory demonstrates how trade affects the distribution of income within trading partners. Explain. 3. How does the Leontief paradox challenge the overall applicability of the factor-endowment model? 4. According to Staffan Linder, there are two explanations of international trade patterns-one for manufacturers and another for primary (agricultural) goods. Explain. Following that speech, the audience asks you to respond t... click for more

International Trade Relation

P.3 Does free trade harm the environment? Environmentalists argue that trade liberalization harms the environment. The decisions of the World Trade Organization (WTO) in particular have been the subject of much criticism. Carbaugh has described environmentalists' three primary assertions (Carbaugh, 2005): 1. Trade liberalization leads to a "race to the bottom" in environmental standards. 2. Trade liberalization conflicts with morally-conscious environmental policies. 3. Trade liberalization encourages trade in products that create global pollution ("pollution havens"). Proponents of trade liberalization argue that freer trade might actually improve the quality of the en... click for more

Revenue and costs of multinational companies

Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability?