Assignment 10: National and Global Finance
(16.0 points)
Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose a pet store, a restaurant, a tutoring business, or something else. This can be the same type of company you chose in assignment 8 or 9, or it can be different.
a. Describe the type of business you chose. (1-2 sentences. 0.5 points)
b. Describe at least two ways in which the local, state, or federal government would have an impact on your business. (2-4 sentences. 1.0 points)
Describe at least one advantage and one disadvantage of price ceilings and price floors. Do you think price ceilings and floors are more helpful or more harmful to consumers and the economy? Explain. (2-4 sentences. 1.0 points)
Describe at least two negative outcomes of having too little money and credit in the economy. (2-4 sentences. 2.0 points)
Describe at least two negative outcomes of having too much money and credit in the economy. (2-4 sentences. 2.0 points)
Which Fed tool do you think is most important, and why? (2-4 sentences. 1.0 points)
Choose one of the following government agencies or laws: FTC, EPA, FDA, CPSC, OSHA, FLSA, EEOC, ADA, SEC, or Affirmative Action. Search online to learn more about the agency or law, and then describe three specific things the law or agency accomplishes. Make sure the information comes from a trustworthy website. Include a link to the website in your answer. (3-6 sentences. 1.5 points)
Describe at least two products that are commonly imported into the United States. (1-2 sentences. 0.5 points)
Describe at least two products that are commonly exported from the United States to other countries. (1-2 sentences. 0.5 points)
Why does the U.S. government encourage U.S. companies to sell their products in other countries? Explain how this helps the U.S. (2-4 sentences. 2.0 points)
Find the value of one U.S. dollar in a foreign currency. You might choose the Euro, the Japanese Yen, the Canadian dollar, or another currency. List the type of currency and the current value of the U.S. dollar in that country. (1.0 points) TIP:http://www.google.com/finance/converter is a good resource for foreign currency information.
Describe at least three exchange rate factors that are likely to attract foreign investors to a country’s currency. Explain why these factors are attractive for foreign investors. (3-6 sentences. 3.0 points)
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