ECON 4131, International Finance, Spring 2002, Exam 1 :: UMN Minnesota Business Economics Finance

Midterm Exam International Finance April 8, 2002 Answer all questions in examination booklets 1. (10 points) Use the BOP accounts guide on the last page of this exam to indicate where each of the following transactions should be recorded in the U.S. balance of payments (e.g.: â€Å"i3†, â€Å"e2†, etc.). Bear in mind that each transaction should generate a capital account and a current account entry. a) The U.S. buys $1m. of lumber from Canada b) Japan buys $500K of fish from an Alaskan fishing outfit c) The U.S. contracts a Panamanian flagged vessel for shipping on the Mississippi d) Mexican migrant workers wire $2m. home for Cinco de Mayo celebrations e) A Panamanian flagged ship purchases a $100K insurance contract from a U.S. firm 2. (10 points) The nation of Pecunia had a current account deficit of $2 billion and a nonreserve capital account surplus of $900 million in 1998. a) What was the â€Å"balance of payments† of Pecunia that year? What happened to the country’s net foreign assets? b) Assume that the foreign central banks neither buy nor sell Pecunian assets. How did the Pecunian central bank’s foreign reserves change in 1998? How would this official intervention show up in the balance of payments accounts of Pecunia? c) How would your answer to (b) change if you learned that foreign central banks had purchased $1.2 billion of Pecunian assets in 1998? How would these official purchases enter the foreign balance of payments accounts? 3. (15 points) Derive (show your work) the following, and provide a brief explanation: a) Uncovered interest rate parity b) Covered interest rate parity 4. (10 points) Define â€Å"neutrality of money† and discuss why money is thought to be â€Å"neutral† in the long-run. 5. (10) Define â€Å"Purchasing Power Parity† and discuss the reasons why it might or might not hold. 6. (15 points) In our formal model of exchange rate determination under â€Å"sticky prices† a) What do the two curves represent?

Essay --

The film Kinsley was an interesting film to say the least. I must admit that I was a little uncomfortable at times while watching this movie. The study that was conducted by Alfred Kinsey was something that I believe the people of society are interested in but are conditioned to pretend like we are not. His finding in Sexual Behavior in the Human Male put many people at ease because I think inside everyone is very curious about what everyone else is doing. This is because we all have the desire to be normal and fit in with society. But as Kinsey found the sexual behaviors of males could not be further from what society thinks is normal. But what is normal really? I myself had this certain view about sexual behavior and there were certain things that I believed to be normal. But because of this movie my eyes are now open to the truth about sex. I think that for society sex is a very touchy subject and because of this people are oblivious to everything about sex. Different cultures have different views on sex and how it is suppose to be done. From the time we are young the culture tha...

Abortions

Abortion means the loss of a fetus before it is able to live outside the womb of a mother. It is a relatively simple and safe procedure when done by trained medical workers during the first three months of pregnancy. It is less safe when performed after the 13th week of pregnancy. Abortion as a way to end unplanned pregnancy especially those unwed mothers, victims of rape and to younger woman who are not ready to be a motherWhen abortion occurs spontaneously, it is often called a miscarriage. It can be intentionally caused, or induced. Abortion can caused deaths of many women from infection and bleeding. It also can cause sterility, or the permanent inability to have a child..Former abortionist, McArthur Hill, M.D., says, â€Å"I am a murderer. I have taken the lives of innocent babies and I have ripped them from their mother's wombs with a powerful vacuum machine.† â€Å"My heart got callous against the fact that I was a murderer, but that baby lying in a cold bowl educated me to what abortion really was,† ( former abortionist, David Brewer, M.D)Body of the PaperAbortion is rampant nowadays, news from radios and televisions forecasting the recovery of fetus thrown anywhere. Mostly young unwed women get involved in premarital sex then when get pregnant will go on the process of abortion.There are types of Abortion namely;Non-surgical AbortionNon-surgical abortion is commonly called or known as â€Å"abortion by pill.† It is also referred to as medical abortion. It is a non-invasive procedure for terminating a pregnancy. The name of the abortion pill is Mifeprex, and it has also formerly been called mifepristone and RU-486.Surgical AbortionA first trimester surgical abortion, which is measured approximately up to 14 weeks from the first day of the last menstrual period, is completed by a procedure known as dilatation and evacuation. The procedure alone will take approximately 5 minutes, although the visit to the healthcare facility clinic ma y take several hours.Emergency ContraceptionEmergency contraception, more commonly known as the â€Å"morning after pill,† is a contraceptive or birth control method that can prevent pregnancy immediately after unprotected sexual intercourse or contraceptive failure, but before pregnancy begins.Before in the United States, the supreme court in their 1973 ruling   give rights of every woman to obtain abortion and through that law many abortions were performed legally in unskilled ways, that caused deaths of woman’s through bleeding and infections.The Supreme Court has been responsible for most of the nation’s laws dealing with abortion. Their interpretation of the U.S. Constitution is considered the supreme law of the land.   laws dealing with abortion. The Fourteenth Amendment to the Constitution grants citizens the right to privacy. This right incorporates the right of a woman to kill her baby through an abortion. The Fourteenth Amendment was in no way rati fied in order to grant women the right to an abortion.The amendment was ratified in 1868 as part of the Reconstruction legislation following the Civil War ruling. â€Å"The Court simply fashions and announces a new constitutional right for pregnant mothers and, with scarcely any reason or authority for its action, invents that right with sufficient substance to override most existing state abortion statutes.† In other words, seven federal justices simply decided that they wanted to make abortion legal and then did it.That law was opposed by many people especially the Roman Catholic Church because they believed that taking of a human life is a grave sin and it is against one of God’s commandments (Thou Shall Not Kill).It resulted to many debates and rallies.Those who are in favor to the legal availability of abortion cite the right of a woman to control their reproduction and they also give judgment that it is also the right of a physicians to perform abortions without fears of criminal charges. Other arguments in favor of abortion  Include population control, the social problems caused by the unwanted children, and the dangers of illegal abortion. There have been many attempts since 1973 to reduce free access to abortions. Laws have been passed by some states and at the federal level to:Require counseling and/or a cooling-off period before an abortion is perform Require an underage woman to notify, or obtain permission, from a parent, guardian or court.ed Ban abortions after viability of the fetus unless required to preserve the woman's life or health.Require an underage woman to notify, or obtain permission, from a parent, guardian or court. Ban abortions after viability of the fetus unless required to preserve the woman's life or health. Ban all abortions. Ban a D&X abortion procedure, except when performed on a dead fetus or to save the life of the woman. In 1989 to 1992, the United States Supreme Court in 5-4 rulings upheld the provisions o f a Missouri Law and a Pennsylvania law restricting abortion. This provisions helps minimize the attempt of abortion nationwide.Conclusion:Therefore I conclude that abortion is killing the life of an innocent fetus inside the womb of a mother. Abortion is done intentionally and unintentionally especially that woman who is not ready to become a mother. Several women now engaged in doing the abortion process especially those who are unwed mothers, students who engaged in drugs, rape victims, and those mothers who have more kids in the family and cant afford to sustain the needs of their children they are not conscious of the consequences in doing that act. Some will put to danger that lead to infections and caused death of many of them. Churches protest the rampant killings of fetusBecause they believed that children’s are special gift from God and they have all the rights to live and enjoy the beauty of the earth created by our creator. Abortion is an illegal act and it should be punishable by law.References:Fettner Ann G. Abortions Retrieved November 14, 2006 from Compton’s Encyclopedia, Volume 1 p.11-12What is Abortion? Retrieved November 14, 2006 from, http://mypeoplepc.com/members/bvpare/alternativestoabortion/id2.htmlMajor laws concerning abortion: U.S. and Canada Retrieved from http://www.religioustolerance.org/abo_supr.htm

Honesty †the Best Policy Essay

Honesty is the human quality of communicating and acting truthful and with fairness, as best one is able. It is related to truth as a value. This includes listening, reasoning and any action in the human repertoire — as well as speaking. Superficially, honesty means simply, stating facts and views as best one truly believes them to be. It includes both honesty to others, and to oneself (see: self-deception) and about ones own motives and inner reality. Western views on honesty  Since the quality of honesty applies to all behaviors, one cannot refuse to consider factual information, for example, in an unbiased manner and still claim that one’s knowledge, belief or position is an attempt to be truthful. Such a belief is clearly a product of one’s desires and simply has nothing to do with the human ability to know. Basing one’s positions on what one wants — rather than unbiased evidence gathering — is dishonest even when good intentions can be cited — after all even Hitler could cite good intentions and intended glory for a select group of people. Clearly then, an unbiased approach to the truth is a requirement of honesty. Because intentions are closely related to fairness and certainly affect the degree of honesty/dishonesty, there is a wide spread confusion about honesty–and a general belief that being dishonest means that one always  correctly understands if their behavior is either honest or dishonest. Self-perception of our morality is non-static and volatile. It’s often at the moment we refuse to consider other perspectives that there is a clear indication we are not pursuing the truth, rather than simply and exclusively at the moment we can muster up evidence that we are right. Socrates had much to say about truth, honesty and morality, and explained that if people really understood that their behavior was wrong — then they simply wouldn’t do it — by definition. Unfortunately, honesty in the western tradition has been marginalized to specific instances — perhaps because a thorough understanding of honesty collides with ideologies of all types. Ideologies and idealism often exaggerate and suppress evidence in order to support their perspectives — at the expense of the truth. This process erodes the ractice and understanding of honesty. To an ideologist the truth quite often becomes insignificant, what matters most are their ideals and what ever supports their desires to enjoy and spread those ideals. Human beings are inherently biased about what they believe to be good due to individual tastes & backgrounds, but once one understands that a decidedly biased approach to what is true — is inherently dishonest, one can also understand how idealism and ideology have poorly served the quest for an honest, moral society. Both honesty and morality require that we base our opinions about what is good — upon unbiased ideas of what is TRUE — rather than vice versa (determining what is true based on what we feel is good) — the way all ideologies would have us believe. The studies of Confucius about honesty Confucius recognized several levels of honesty, fundamental to his ethics: His shallowest concept of honesty was implied in his notion of Li: all actions committed by a person to build the ideal society – aiming at meeting their surface desires of a person either immediately (bad) or longer term (good). To admit that one sought immediate gratification could however make a bad act better, and to hide one’s long term goals could cloud a good act. A key principle was that a â€Å"gentleman† must strive to convey his feelings honestly on his face, so that these could help each other coordinate for long term gain for all. So there was a visible relation between time horizon, etiquette and one’s image of oneself even in the mirror. This generates self-honesty and keeps such activities as business calm, unsurprising, and aboveboard. In this conception, one is honest because it suits one’s own self-interest only. Deeper than Li was Yi or righteousness. Rather than pursuing your own interests you should do what is right and moral – based on reciprocity. Here too time is central, but as a time span: since your parents spent your first three years raising you, you spent three mourning them after they die. At this level one is honest about one’s obligations and duty. Even with no one else to keep you honest or to relate to directly, a deeply honest person ould relate to ancestors as if they were alive and would not act in ways that would make them ashamed. This was part of the moral code that included ancestor worship, but Confucius had made it rigorous. The deepest level of honesty was Ren, out of which flowed Yi and thus Li. Confucius’ morality was based upon empathy and understanding others, which required understanding one’s own moral core first, rather than on divinely ordained rules, which could simply be obeyed. The Confucian version of the Golden Rule was to treat your inferiors as you would want your superiors to treat you. Virtue under Confucius is based upon harmony with others and a recognition of the honest reality that eventually (say in old age) one will come under the power of others (say one’s children). So this level of honesty is to actually put oneself in context of one’s whole life and future generations – and choose to do or say nothing that would not reflect one’s family’s honour and reputation for honesty and acceptance of truth, such as eventual death. Partially because of incomplete understanding of these deeper notions of honesty among Westerners, in Asian countries it is common to refer to those who do not have them as barbarians. While sometimes Asian cultures sanction an almost intolerable degree of delay and ambiguity for Western tastes, it is very often to avoid lying, or giving a positive impression where doubt exists. These would be thought dishonest by Asians. Thus pressing for a decision on a matter where it is not yet possible to give an honest commitment or answer is seen as extremely rude – in effect, forcing someone to choose to be either rude or dishonest. Both being unthinkable in traditional culture, one thus delays. A Buddhist teaching on honesty Thanissaro Bhikkhu taught: â€Å"Real honesty is being honest about what your possibilities are, what your potentials are. Thats where true honesty lies. It stretches us. It’s not simply admitting where we are – that’s a beginning step, it’s not the end step. So be honest about where you are but also be honest about what your possibilities are. That keeps the challenge of the path always before us. †

Interpersonal Communications Assignment Example | Topics and Well Written Essays - 500 words

Interpersonal Communications - Assignment Example As such, intercultural communications will foster interpersonal communications between ordinary people and respectable citizens in the different cultures that one will meet while travelling. Male/Female communication differences, which relate to interpersonal communications, are very significant in the society. In a given society, the mode of communication is different between men and women, women and women, children and adults, and between men and men. However, there is need to establish effective interpersonal communications between these categories of communication. As such, the knowledge on male/female communication differences will help us to establish respectable and efficient interpersonal communications. In most cases, women manifest abject respect while communicating with men while men manifest objectivity while communication with other men. As such, male/female communication differences derive the aspect of gender, which is very significant in interpersonal communications. Birth order relates to interpersonal communications and has significant effects on communications in the society. Indeed, birth order may define generational differences in the society and the level of respect while communicating to people of different ages. As such, birth order affects communication in that people within the same generation as defined by the birth order has a unique way of communication. Indeed, the communication modes, language, and goals of the new generation differ from those of the older generation. As such, this knowledge will foster effective communication between people in the same generation and across different generations. Moreover, birth order defines the respect levels in the society with the older people deserving respectable communication. This knowledge will foster effective interpersonal communications. Moreover, listening is another important topic that relates to interpersonal

Same sex mariage Research Paper Example | Topics and Well Written Essays - 1000 words

Same sex mariage - Research Paper Example Marriage is an essential part of the life of any person. Some of the main reasons why people marry each other include the need for financial stability, emotional understanding, the need for love, and a birth of children. Out of all these factors, emotional understanding holds the central place in maintaining a perfect marital relationship. Love and care are also the key factors that play a valuable role in creating and maintaining affectionate feelings in the minds of people. Although same sex marriages are not considered acceptable among religious and social groups in many parts of the world, this concept has found its base in many countries. For example, if we talk about the United States of America, we can say that the government believes in an individual freedom. Although the common belief is that marriage is a sacred relationship, which involves individuals from opposite genders, the concept of existence of such relationships between the members of the same genders has also star ted to influence the minds of many critics of same-sex marriages. It is due to this fact that the government of the United States has legalized same-sex marriages in many states. Some of those states include Massachusetts, Washington, New York, New Jersey, Vermont, and Connecticut (Doskow n.pag.). The courts of these states have declared that marriage is a basic human right, and gays and lesbians are also entitled to gain the benefits of this right (Cahill 4). Here, an important and recent development in this regard is that the French government has also legitimized same sex marriages a couple of days ago. â€Å"France has become the 14th country to legalise same-sex marriage† (Chrisafis 1). However, the truth is that although the government has legalized same-sex marriages, but the majority of the US population does not regard the living status of same-sex couples. They do not consider same-sex marriages good for the society. Let us now discuss some of the main issues relate d to the same-sex marriage. One of the main issues that homosexual couples usually face is criticism from the supporters of traditional family systems. The supporters of traditional family systems believe that a proper family is essential for the existence and development of a society. They believe that men are made for women and women for men, and that only the members of opposite genders can form and run a family system. They think that lesbian and gay couples deteriorate the foundations of the family system, because they can neither completely fulfill the sexual desires of each other nor they can give birth to babies, which is essential for the development of a society. They also say that same-sex marriages result in decreasing the available work force for a country because of their inability to produce children. Another issue that same sex couples face is the discouraging behavior of other members of the society. Generally, people do not encourage same sex marriages because they think that people do same-sex marriages just to fulfill their illegal sexual desires instead of making a sacred relationship. This is the reason why most of the people dislike same-sex marriages and raise a voice against them. The result is not good for same-sex couples because they cannot live freely in the society. They also undergo a hard struggle in order to find a respectable place in the society. Religious institutions also promote marriages between the members of op

Sport and media Essay Example | Topics and Well Written Essays - 250 words - 2

Sport and media - Essay Example article, the features associated with athletes and the tone used in sports coverage and reports varies according to the ethnicity and race of an athlete. The researchers were guided by four hypotheses that were developed using previous knowledge on ethnicity and racial minorities in the news. Media exposure using race-related messages can provide advantages in terms of identity to whites or majority consumers. They are offered intergroup messages, which support White positive distinctiveness and self-concept. The first hypothesis is that minority athletes are usually overrepresented as criminals when compared to Whites. The second hypothesis is that minority athletes are usually characterized unfavorably than White athletes in the coverage of crime related sports news. The third hypothesis is that crimes associated with minority athletes will be characterized with negative consequences. The fourth hypothesis is that the presentation of crime related sports news varies according to the race of an athlete (Mastro, Bleacha & Seate, 2011). These researchers show that the manner in which athletes are portrayed in crime related news varies according to race. In this case, minority athletes, particularly Black athletes were overly represented as criminals. The researchers used a social identify framework in order to analyze the content in the newspapers systematically. Mastro, D., Bleacha, E., & Seate, A. (2011). Characterization of Criminal Athletes: A Systematic Examination of Sports News Depictions of Race and Crime. Journal of Broadcasting and Electronic Media, 55, (4)