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Should multinational corporations be encouraged to invest in low- and middle-income countries,
such as through investment promotion programs, and if so, under what conditions?
What is the role of the financial intermediation in economic development?
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000 and her store made $130,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $35,000 plus 16% of the store’s profits. Since the change, the store is performing much better, and she forecasts profits this year to be $270,000 (again, not counting the payment to her top manager).
Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?
$
Does the manager make more money under the new payment scheme?
2: With hundreds of millions of people still living in extreme poverty, what are the causes and what policies have been most effective for improving the lives of the poorest of the poor?
Many believe that the main objective of government economic policy should be to increase productivity and economic growth.”
Using the data above and your economic knowledge, critically evaluate this statement by providing THREE reasons for and THREE reasons against. Ensure that you provide a relevant real-world example from the given Caribbean economy to support EACH point.
What has been the impact of international financial organisations including programmes of the IMF and the World Bank Group on the growth and stability prospects of low- and middle-income countries?
Should exports of primary products such as agricultural commodities and ores be promoted, or should policy support export diversification?
How do many low- and middle-income countries get into serious foreign-debt problems, and what are the implications of debt problems for economic development? How do financial crises affect development
What is the impact of foreign aid from high-income countries? Should low-income countries continue to seek such aid, and if so, under what conditions? Should high-income countries continue to offer such aid, and if so, for what purposes?
Discuss the major problems of present-day Pakistan with special reference to Inflation, Unemployment and Poverty and describe their solutions. (Words limits 1000)
