Why should a government be concerned with the pricing of products that.docx

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Why should a government be concerned with the pricing of products that a company transfers to an affiliate in another country? Please explain in terms of taxation and exchange rates. Solution The government should be concerned with the pricing of the products which are transferred to affiliate companyin order to control the price index of the balance of payments. This is because failure to control the manufacturers will find for the better way to avoid paying the taxes and the tariffs as this can affect the countries value of the domestic product. the government can also control the prices to avoid inflation as when the manufacturers are given chance to price their products the prices can be high or very low to an extent that they will increase the countries exchange value which can lead to inflation and also the imports may be very high than the exports and this end up affecting the country .

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Please reword these paragraphs DO NOT use the same words as in these paragraphs. DO NOT COPY word for word from any websites. You must use your own words please. · 1-Consumer surplus is when a customer buys a product for less than it is worth. A good example of this would be a customer buying a product that is on sale. They got it for a good price. The book defines customer surplus as the value the consumer gets from buying a product less its price. So whatever the price is for the product, the customer has to pay less than that in order for it to be a surplus. A producer surplus is when a producer sells a product and gets more money for it than expected. I've seen this lot in small businesses. They sell their products at a higher price than the bigger stores. I've gone into a small business and paid 150 for a bottle of soda and it will have the price of $1.00 written right on it but they will still sell it for the higher price. They are getting a surplus on that item, of course minus the taxes and crv. I'm sure some of you have experienced this before. The book defines a producer surplus as the price the producer sells products for less the cost of producing it. · 2-When an industry in the private sector is not performing efficiently or effectively, there is said to be "market failure". The recommendation by economists and others typically is then for government actions to combat such failure, such as taxes to help reduce pollution. The diagnosis of market failure may be accurate, but the call for government involvement may be naïve and inappropriate. The reason is that actual governments do not necessarily do what economists and others want them to do because there is "government failure" as well as market failure. Before recommending government actions to correct market failures, one should consider whether actual government policies would worsen rather than improve private sector outcomes. Since many factors often make for considerable government failure, considering such failure is crucial and not just a theoretical fine point. 3- Negatives Externalities are as follows: The number one affect is the environment and the impact that it has on that. The cost to society is high and that should be accounted for in any case that will have an impact on it. The marginal cost needs to be taken into account also this has an impact on the economy as so does the waste that is produced. You want the excess to be equal to the equilibrium of the product and this will decrease the impact on the economy this will produce no excess of the product and the economy a balance. Questions to answer for my teacher 1-Why is it so difficult to get the incentives between us and our political leaders aligned? Why do these misaligned incentives cause problems? · 2-Using Bastiat's characterization of unintended consequences, why might the government cause more problems when it intervenes? Can you think of real examples of this? 3-while the government.

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Tässä tutkimuksessa näytetään, että hinnat reagoivat enemmän arvonlisäveron (alv) nousuihin kuin laskuihin. Ensiksi hyödyntäen alv:n muutoksia EU-maissa vuosina 1996-2015 havaitaan, että hinnat nousevat 3-4 kertaa enemmän alv:n nousujen seurauksena kuin ne laskevat alv:n laskujen seurauksena. Toiseksi hyödyntäen Suomen hiusalan alv:n muutoksia, jotka nähdään uskottavasti eksogeenisena hintojen ja yritysten käyttäytymiselle, havaitaan että epäsymmetrinen hintojen muutos alv:n vaikutuksesta säilyy usean vuoden ajan veromuutosten jälkeen. Kolmanneksi tutkimuksessa dokumentoidaan useita empiirisiä havaintoja, jotka eivät ole yhdenmukaisia taloustieteellisten veron kohtaantoa käsittelevien mallien kanssa. Tutkimuksen havaintojen perusteella yritysten käyttäytymisen piirteet aiheuttavat alv:n epäsymmetrisen hintavaikutuksen. Tulosten mukaan yritykset hyötyvät eri suuntiin tapahtuvista alv:n muutoksista korkeampien voittojen muodossa.

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