International Economics

My problem is the international monetary system with exchange rates, interest rates, and the accounting system. Question 1 Which of the following transactions would contribute to a US current account surplus and why (make sure that you justify, in each case, why would the transaction would/would not contribute to a current account surplus): a. IBM barters a $100 million worth of computers to Jamaica in exchange for $100 million worth of hotel services on the island. b. The US borrows $100 million long term from Europe to buy $100 million of European goods this year. c. The US sells a $100 million worth of arms to Israel for $100 million bank deposits. d. The US government makes a ... click for more

Understanding the rise and fall of exchange rates in Britain between the 1970-1980's.

In the late 1970s Britain seemed to have struck it rich. Having developed its North Sea oil-producing fields in earlier years, In the late 1970s Britain seemed to have struck it rich. Having developed its North Sea oil-producing fields in earlier years, Britain suddenly found its real income higher as a result of a dramatic increase in world oil prices in 1979-1980. In the early 1980s, however, oil prices receded as the world economy slid into a deep recession and world oil demand faltered. Use the clues given about the British economy to explain the rise and fall of the pound's real effective exchange rate between 1978 and 1984. Pay particular attention to the role of nontradeables.

Understanding the concept of the stability pact and its influence on EMS exchange rates.

Why might EMS provisions from the extension of central bank credits from strong to weak currency members have increased the stability of EMS exchange rates?

Working with financial economics regarding stock valuations. Attachments in Excel.

SPF company has just paid a dividend of $3.00 on its stock. The growth rate in dividends is expected to be a constant 7.7% per year, indefinitely. Investors require an 18% return on the stock for the first 3 years, a 12% return for the next 3 years and then a 13% return thereafter. What is the current share price for SPF stock?

Working with financial economics nonconstant dividends for stocks. Attachments in Excel.

Corn Inc. has just paid a dividend of 6$ per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another dividend. If you require an 11% return on the company's stock how much will you pay for a share today?