Suppose that the Marginal Abatement Cost function and the Marginal Damage function for an
industry are given as follows:

MAC = 80 – 0.2e
MD = 0.3e

For simplicity here, we are assuming that they are linear. Suppose further that the emissions of
the pollutant in question are governed by a Cap and Trade program.

a. In order for the program to be efficient, how many pollution permits would have to be
issued? Explain.
b. What would be the expected market price of a permit if the efficient number of permits is
issued? Explain.
c. What is total cost of the permits used by firms across the industry? Explain.
d. What is the total abatement cost incurred? Explain.
e. How would the total cost (cost of pollution permits plus abatement cost) to firms compare
to the total cost to firms in the case when an efficient emissions tax is imposed? Is it
higher? Is it lower? If so, why? Explain.

Q 1: BMO holds $300 million in deposits and maintains a reserve ratio of 10 percent.

? Show a T-account for BMO.

? Now suppose that BMO’s VVIP depositor, Mrs. Johnson, withdraws $20 million in cash from her account. If BMO decides to restore its reserve ratio by reducing the amount of loans outstanding, show its new T-account. 46. [4 marks; Ch11]

Q 2: Find a news article in Moodle, titled “Trump_ U.S. dollar ‘is getting too strong’ – News”, and answer following questions.

? What does ex-President Trump mean by a “strong dollar”?

? Is there an economic connection between the president’s desire for a weaker dollar and his desire that the Federal Reserve (Central Bank in USA) keep interest rates low? Briefly explain.

? Why would a strong dollar make it hard for US firms to compete in international markets?

I’m working on a finance multi-part question and need an explanation and answer to help me learn.

Please describe and evaluate the Country/Political Risk faced by this organization and describe its successes and failures.

1. What has been the lending strategy followed by Santander? Are lending decisions based on the credit background of the borrower, or on the riskiness of the venture? How do they manage risk? How do they finance their loans? Why is there so little cross-border borrowing?
2. How is the lending strategy different to US commercial banks?
3. As a consultant to the CEO, what would you suggest Magda Salarich do now? Please obtain, identify and evaluate the data and conduct a multi-perspective analysis of the evidence to make a logical recommendation for solving the problem with a global perspective.
4. Defend your recommendation and communicate your beliefs clearly and accurately.

Mid-semester assignment is an Individual Assignment. In the Mid-Semester Assignment, you have to read cases provided in Canvas and chose one case to prepare a written case summary & analysis about the firm’s international business strategy (minimum 2000 words, maximum 3000). The case analysis should involve the following components:

Introduction (introduce the firm’s mission and goals, major business or core product, major international market)

Present a short history of the company featured in the case including its internationalization process (make sure to provide information that goes beyond the information already provided about the company in the cases).

Briefly summarize the case (Not summarize the whole case, just pick one or two main international activities in China to summarize) 

Provide detailed and personal analysis about the case (personal thoughts, lessons learned, practical suggestions for the focal firm’s international business)

The topic for this discussion will be investing in stocks which is covered in Chapter 14. For this exercise, you will need to pick one publicly traded corporate stock to evaluate. First, tell us how the stock has performed during the past several years in terms of its share price. Did it go up or down, and by how much?

Next, tell us whether or not you think the stock would make a good long-term investment and why (give several reasons). Any stock you want to evaluate is fine.  You do not need to do a detailed quantitative analysis. Just provide a brief commentary on how the company’s prospects look going forward based on your research (e.g., do they have great technology, is the market they are in growing, do they have much competition).