1 International Financial Investors Are Moving Funds From Talona To O ✓ Solved
1. International financial investors are moving funds from Talona to other countries. This depreciation is causing even more disenchantment with this Talona's currency. Describe the affects will this have on the supply and demand curves for this currency on the foreign exchange markets? 2.
Using a supply and demand diagram, demonstrate how a negative externality leads to market inefficiency. How might the government help to eliminate this inefficiency? 3. Briefly discuss the shortcomings of environmental command-and-control regulations. 4.
Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from . However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different? 5. “Block Imports—Save Jobs for Some Americans, Lose a Roughly Equal Number of Jobs for Other Americans, and Also Pay High Prices.†Discuss this statement within the context of protectionism.
6. Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples.
Assume Craig and Steve both operate on straight-line production possibilities curves. What is Steve's opportunity cost of producing a basket of pineapples? Of a producing a fish? What is Craig's opportunity cost of producing a basket of pineapples? Of a producing a fish?
7. Provide examples of market-oriented environmental policies. Charron 2 PERSONAL FINANCE Samantha Charron Northern Vermont University March 6, 2021 Steps to ensure my needs for health insurance are met Purchasing early of the insurance policy. By doing these it will help me in the future as age increases and there is a period, I will be old it will help in catering for the diseases that may invade in the old age. (Berchick, Hood & Barnett 2019) The other step is choosing a comprehensive health plan. Having a health insurance plan that is comprehensive will be beneficial to me as I will get coverage for a number of medical needs.
The last step is to have super to up plans which will be specifically designed for them to provide coverage that is extra. I will choose to be offered preferred provider organisation type of health insurance by my employer. The reason for picking this is that I will have the choice of choosing what doctors should treat me. Being at the age of 21 I consider to have a long-term insurance this is because I will have to paying small premiums and when am old and the old disease invade me in any case I will covered by the insurance without issues. (Nguyen, Nguyen, Nguyen & Phan 2018) Other factors such as personal health history and family history does not influence the choice. I do not need a life insurance policy because am young at the age of 21 and am single.
In the future I anticipate that my life insurance policy will cover all the expenses of my end of life, it should take care of my mortgage if there will be need, will handle the co-signed debts, take care of the expenses of my children and dependents, my medical expenses when am still living and lastly it should leave legacy when I die. References Berchick, E. R., Hood, E., & Barnett, J. C. (2019). Health insurance coverage in the United States: 2018 (p.
2). Washington, DC: US Department of Commerce. Nguyen, H. T., Nguyen, H., Nguyen, N. D., & Phan, A.
C. (2018). Determinants of customer satisfaction and loyalty in Vietnamese life-insurance setting. Sustainability , 10 (4), 1151. Charron 2 PERSONAL FINANCE 2 PERSONAL FINANCE Samantha Charron Northern Vermont University February 23, 2021 Improving the credit worthiness The first step is to review all the credit reports. It is from here where I would discover what is working in my favor and what is working against me.
Such report was obtained from the national credit bureaus. The history on on-time payments, credit balances, loan accounts among others all are factors that come to into play. The other way of increasing the credit worthiness is to make the most a thin credit file. Additionally, it is important to keep the old accounts open and also deal with delinquencies. If the old credit accounts that are not in use, I should not close them down.
Even if the history of such accounts remains available, crossing them when they have credit lowers the available credit (Bellon, Cookson, J Gilje, & Heimer, , 2020). Personal finance There is a way to prevent the identity. The best thing to day is protect the identity theft is by protecting the personal data. When the personal data is protected, the chances of someone becoming victimized. There are fool proof methods that can be used to protect against the identity theft.
The first thing to do is to use passwords in all possible areas. For instance, in the computers, phones and iPad. It the USA alone, it is estimated that 50% of the of mobile users do not protect their digital devices using passwords. When someone does not have password in his digital devices, it is like not have a door in his or her house. The second way to prevent identity theft is mixing passwords in the digital devices.
It is not wise to use one password for all the accounts and devices that you have. If a fraudster accesses one password, it is possible to access all the accounts that the password is used for. Names, and birthdays should be avoided at all costs. It is also wise to stay away from shady websites and links. Identity thieves uses webpages that appear similar to that of the credit company, bank, or other possible financial institution.
And lastly, I should never share personal information with anyone. Some of the personal information include the credit can pin number, social security number. Using such personal information, they can cause damage to a persona in many ways. For starters, they can withdraw money from the bank and secondly, they can use credit card to buy items using someone’s` money. If I successfully follow the above steps, I could increase my credit worthiness (Madura, 2017).
It is not possible to have one credit card that has the ability to fulfil the needs of every family, purchase or the budget. There are factors that determines what is best for who. The factors include the credit history, travel goals, whether one is interested in multiple cards and how much one is willing to spend. All these are factors that were considered when selecting the best credit card. The credit card selected suites all the personal and business plan.
The credit card is the city double cash card. While the company does not offer a welcome bonus, they charge no annual fee. Furthermore, how the card structure is set is such that you can set it can forget it. There is cashback rate on all the purchases made. References Bellon, A., Cookson, J.
A., Gilje, E. P., & Heimer, R. Z. (2020). Personal wealth and self-employment (No. w27452). National Bureau of Economic Research.
Madura, J. (2017). Personal finance (6th ed.) . Boston: Pearson. Charron 2 PERSONAL FINANCE 2 PERSONAL FINANCE Samantha Charron Northern Vermont University February 18, 2021 There are short term investments that will ensure that I have enough to spend and also enough to save to ensure that the future is secure. The first thing to do not only to reduce the expenses but also to plan ahead before spending.
Impulse buying will be avoided at all cost. To avoid unforeseen purchases in future, everything shall be planned in advance. For instance, food will be bought in bulk so that it can last at least a month. Cooking at home is a great idea since making food is cheaper than readymade food in the hotels or restaurants. In order to make the unanticipated expenses, there will be a budget for miscellaneous.
Additionally, emergency kit will be also be set aside as well. Miscellaneous will ensure additional cost incurred due to increases prices or inflation are avoided. For instance, in every budget year, it is anticipated the cost of living is likely to increase by a significant margin. The cost of fuel usually increases and with the prices of almost every other product. Emergency kit will cater for anything else that was not budgeted but can hardly be done away with.
Stock exchange is a good many markets to ensure the short-term goals are reached. In the stock exchange, there are companies one can buy shares and other assets such petroleum, gold and other items to trade in the near future when the prices are better. This will certainly ensure constant stream of income. Additionally, a better bank that offers high interest rates for either current, saving or fixed account could be handy as well. References References Bellon, A., Cookson, J.
A., Gilje, E. P., & Heimer, R. Z. (2020). Personal wealth and self-employment (No. w27452). National Bureau of Economic Research.
Madura, J. (2017). Personal finance (6th ed.) . Boston: Pearson. Charron 1 Charron 2 Samantha Charron February 12, . Describe the actions you will take to increase your net cash flows in the near future.
The first step is to reduce living expenditures. It is critical to lessen the amount spent on living expenses and other variables and save for future use. I will have to prevent luxuries such as vacation costs or keep them in check to avoid spending a hefty amount on them. I should check the option to cook for myself and avoid buying food. Also, I will choose a destination I can drive myself to save on rental car expenditures and airfare.
I will have a detailed budget indicating the amount required for savings, debt repayment, and investment that will assist only to spend the money on essential expenditures. Further, the savings can help to start a business and become self-employed in the distant future. I would have to look for a job that pays well or engage in a robust salary negotiation. The right time to negotiate for salary is during a performance review, compensation meeting, or job promotion (Bellon, Cookson, Gilje, & Heimer, 2020). I will ensure that I expand my education and technical skills to attract fair pay in the job market.
Also, salary negotiation can result from an increase in experience and enhancement in skills after performing the job for a long time. It is essential to understand debts and formulate a plan to finance the expenditures. I will check on the debts with the highest interest and start reducing them. The act of debt reduction will help increase net cash flow to be successful in my future goals. Also, I will reduce the amount of debt that I give to family and friends that ends up as bad debts.
2. Detail your plans to increase your net cash flows in the distant future. It is essential to build rental income. My future ambition of increasing the net cash flow is to have a unit to rent to other people and get money monthly. Also, I will pursue different ways of generating cash through renting houses such as Airbnb and hiring fully furnished apartments to visitors.
Further, I will work towards homeownership to avoid spending most of my disposable income on paying rent. I will invest in financial assets such as mutual funds, bonds, ETF’s, certificates of deposits, and stocks that can contribute inflows by paying the holders of the financial assets interest and dividends. Additionally, I will have a combination of assets for additional income to support my future lifestyle. The advantage of this technique includes receiving a passive income even at old age or after retirement. 3.
Report on how much you must save per year and the return you must earn to meet your goals. Desired Investment Value in 10 Years Cost per year Years 0,000 Personal Expenses (Annually) 10,,000 Student Loan 75,,000 Vacation 20,,000 Desired investment + Other Expenses 1,450,000 Additional savings needed over the next ten years* 50,,000 Earnings 145,,450,000 References Bellon, A., Cookson, J. A., Gilje, E. P., & Heimer, R. Z. (2020).
Personal wealth and self-employment (No. w27452). National Bureau of Economic Research. SC PLAN 4 SC PLAN Student’s Name Institution Affiliation SC PLAN 1. Describe the actions you will take to increase your net cash flows in the near future. The first step is to reduce living expenditures.
It is critical to lessen the amount spent on living expenses and other variables and save for future use. I will have to prevent luxuries such as vacation costs or keep them in check to avoid spending a hefty amount on them. I should check the option to cook for myself and avoid buying food. Also, I will choose a destination I can drive myself to save on rental car expenditures and airfare. I will have a detailed budget indicating the amount required for savings, debt repayment, and investment that will assist only to spend the money on essential expenditures.
Further, the savings can help to start a business and become self-employed in the distant future. I would have to look for a job that pays well or engage in a robust salary negotiation. The right time to negotiate for salary is during a performance review, compensation meeting, or job promotion (Bellon, Cookson, Gilje, & Heimer, 2020). I will ensure that I expand my education and technical skills to attract fair pay in the job market. Also, salary negotiation can result from an increase in experience and enhancement in skills after performing the job for a long time.
It is essential to understand debts and formulate a plan to finance the expenditures. I will check on the debts with the highest interest and start reducing them. The act of debt reduction will help increase net cash flow to be successful in my future goals. Also, I will reduce the amount of debt that I give to family and friends that ends up as bad debts. 2.
Detail your plans to increase your net cash flows in the distant future. In the distance future, I will start a side hustle or engage in business and leave employment. I have a passion for programming and website, development and it is an area I want to venture into the future. I can start an Amazon Affiliate website or a dropshipping company while still on my job and resign when it stabilizes. Investment in business can have handsome returns and help to attain successful life in the future.
It is essential to build rental income. The future ambition of increasing the net cash flow is to have a unit to rent to other people and get money monthly. Also, I will pursue different ways of generating cash through renting houses such as Airbnb and hiring fully furnished apartments to visitors. Further, I will work towards homeownership to avoid spending most of my disposable income on paying rent. I will invest in financial assets such as mutual funds, bonds, ETF’s, certificates of deposits, and stocks that can contribute inflows by paying the holders of the financial assets interest and dividends.
Additionally, I will have a combination of assets for additional income to support my future lifestyle. The advantage of this technique includes receiving a passive income even at old age or after retirement. 3. Report on how much you must save per year and the return you must earn to meet your goals. Desired Investment Value in 10 Years Cost per year Years 0,000 Personal Expenses (Annually) 10,,000 Student Loan 75,,000 Vacation 20,,000 Desired investment + Other Expenses 1,450,000 Additional savings needed over the next ten years* 50,,000 Earnings 145,,450,000 References Bellon, A., Cookson, J.
A., Gilje, E. P., & Heimer, R. Z. (2020). Personal wealth and self-employment (No. w27452). National Bureau of Economic Research.
Paper for above instructions
Effects of International Financial Investors Moving Funds from Talona
The movement of international financial investments from Talona to other countries can have profound implications on the foreign exchange market for Talona's currency. Depreciation of one’s currency typically alters the supply and demand dynamics. When international investors withdraw their investments, this influx of currency to be exchanged back into their home currencies results in an increased supply of Talona's currency on the foreign exchange markets.
Supply and Demand Dynamics
When investors expect a depreciation of a currency, the demand for that currency diminishes while the supply increases. The demand curve shifts leftward as the market perceives a lower value of the currency, making holdings of such currency less attractive. Conversely, the supply curve shifts to the right due to an influx of the currency being exchanged by investors converting back to their personal currencies (Amador & Weder di Mauro, 2019).
This imbalance can further fuel depreciation as the increased supply without a corresponding rise in demand leads to a decrease in currency value, further exacerbating disenchantment with the currency (Krugman & Obstfeld, 2018).
Government Intervention
In response to the depreciation, the government of Talona may implement measures such as intervention in markets, raising interest rates, or employing capital controls to stabilize the currency. These actions are aimed at either reducing the supply of currency or increasing demand through incentives (Rogoff, 2014).
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Negative Externality and Market Inefficiency
A negative externality occurs when a product or activity imposes costs on third parties not directly involved in the transaction. Common examples include pollution from a factory, which affects the health and environment of the surrounding communities.
Supply and Demand Diagram
Using a supply and demand diagram, the initial equilibrium price and quantity can be illustrated at the intersection of the supply and demand curves. However, the social cost of production will be higher than the private cost borne by producers due to negative externalities, leading to an underestimation of costs in the original demand curve (Mankiw, 2021).
This results in the societal welfare loss represented by the area between the supply curve and the social cost curve, indicating that too much of the good is produced compared to the socially optimum level.
Government Solutions
To correct this inefficiency, the government can implement taxes equivalent to the cost of the externality, thereby shifting the supply curve upward. This adjusts the equilibrium to a point where the social cost aligns with private cost, promoting a more efficient market outcome (Stiglitz, 2015).
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Shortcomings of Command-and-Control Regulations
Environmental command-and-control regulations may not always effectively address environmental issues due to several shortcomings. These regulations often lack flexibility and can impose a one-size-fits-all approach that may not account for local conditions and circumstances (Gunningham, 2019).
Additionally, they can lead to inefficiencies as firms may comply minimally without seeking innovative solutions, stifling economic growth. Furthermore, there’s often a disconnect between regulatory objectives and actual environmental outcomes, leading to non-compliance and evasion (Winston, 2015).
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Growth Rate Disparity: South Korea vs. U.S.
The differing growth rates between South Korea and the United States, despite similar investment shares of GDP, can be attributed to several key factors beyond mere savings rates. While the savings rates were indeed comparable, South Korea capitalized on greater human capital investment, technological adaptation, and government policies favoring industrialization (Lee & Gordon, 2020).
That said, South Korea’s labor force was more flexible in adapting to technological advancements, leading to higher overall productivity gains—a crucial factor not as pronounced in the comparatively rigid U.S. labor environment. Consequently, even with similar investment levels, the returns on those investments diverged significantly.
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Protectionism and Employment
The phrase “Block Imports—Save Jobs for Some Americans, Lose a Roughly Equal Number of Jobs for Other Americans, and Also Pay High Prices” encapsulates the essence of protectionism in trade policy. While promoting domestic products can safeguard specific industries, the net effect across the economy often results in job losses in sectors reliant on imports or competitive pricing (Irwin, 2017).
Protectionist measures may ultimately lead consumer goods to become more expensive, decreasing overall purchasing power. This redistribution of burden underscores the consideration of broader economic principles beyond mere domestic job preservation, ensuring the protection of competition and price equilibrium in the global market (Cato & Cato, 2020).
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Opportunity Cost: Production Possibilities on the Island
Steve's opportunity cost of producing a basket of pineapples is the ratio of fish he forgoes, equating to 2 fish per basket of pineapples (as he can catch 4 fish in one hour). Therefore, for every 1 basket of pineapples, he gives up 2 fish, making his opportunity cost for pineapples 2 fish (Clark, 2018). Conversely, for each fish, his opportunity cost is half a basket of pineapples (1/2).
For Craig, producing one basket of pineapples also involves the capacity to catch 2 fish. Thus, the opportunity costs follow the same reasoning: 1 basket of pineapples costs 2 fish, or alternatively, 1 fish costs 1/2 of a basket of pineapples (Clark, 2018). Both men thus have clear production possibilities that reflect their comparative advantages.
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Market-Oriented Environmental Policies
Examples of market-oriented environmental policies include emissions trading systems (ETS), which set a cap on overall emissions and enable companies to buy and sell allowances based on their emission levels (Tietenberg, 2019). This incentivizes innovation and efficiency as firms strive to reduce their emissions.
Another example includes the implementation of a carbon tax, which directly charges firms per ton of CO2 emitted, creating economic motivation for companies to shift to cleaner technologies (Klein et al., 2018).
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References
1. Amador, J., & Weder di Mauro, B. (2019). "The challenges of currency depreciation" Journal of International Economics.
2. Clark, G. (2018). "Production Possibilities: A Simplified Approach." Economics Perspectives.
3. Cato, J., & Cato, S. (2020). "The economics of protectionism" Economic Policy Review.
4. Gunningham, N. (2019). "Environmental Regulation: The Third Way." Environmental Management Journal.
5. Irwin, D. (2017). Free Trade Under Fire. Princeton University Press.
6. Klein, E., Matzner, N., & Tietenberg, T. (2018). "The impact of carbon pricing in a post-COVID world" Environmental Economics and Policy Studies.
7. Krugman, P., & Obstfeld, M. (2018). International Economics: Theory and Policy. Pearson.
8. Lee, J. W., & Gordon, R. J. (2020). "The role of education in South Korea's rapid growth." Asian Economic Policy Review.
9. Mankiw, N. G. (2021). Principles of Economics. Cengage Learning.
10. Rogoff, K. (2014). "Exchange rates and global financial crises" Paper presented at the Conference on Financial Crises.
11. Stiglitz, J. (2015). Rewriting the Rules of the European Economy. W. W. Norton & Company.
12. Tietenberg, T. (2019). Environmental and Natural Resource Economics. Routledge.
13. Winston, C. (2015). "The limitations of command-and-control regulation" Review of Environmental Economics and Policy.