Do you believe its monetary union will be beneficial for Europe?
What will be an ideal response?
The gains are already being realized throughout Europe—for example, car prices have decreased and converged across Europe. Academic research documents sizable economic benefits following the introduction of the euro in terms of price convergence, lower costs of capital, and increased trade. For example, the European Commission has estimated the microeconomic gains of monetary union to amount to 0.5% of GDP of the entire EU—a substantial sum. On the other hand, the sovereign debt crises in Greece, Ireland, and Portugal, and potentially in Spain, and the persistent high unemployment rates in these countries while Germany thrives suggest that asymmetric macroeconomic adjustment costs are present and are causing strain within Europe.
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Which of the following statements is true of ethnocentric staffing?
A) Ethnocentric staffing appeals to companies that maintain lose control over decision-making in branch offices abroad. B) Companies that use ethnocentric staffing formulate policies designed to work in every country in which they operate. C) Ethnocentric staffing is generally used to fill positions at all levels of an organization. D) In ethnocentric staffing, individuals from the host country manage the operations abroad.
OnTrack Rehabilitation Center signs an agreement with Platinum Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 per¬cent. OnTrack's best argument for avoiding payment to Platinum Bank is that
a. performance of the contract is commercially impracticable. b. payment of the loan would force the debtor into bankruptcy. c. the law has rendered performance of the contract illegal. d. the specific subject matter of the contract has been destroyed.