Multinational Clothing Company

Description:• This is an individual task.• Weight: This task is worth 40% of your overall grade for this subject.Submission: Via Moodle (Turnitin). Submissions will be accepted until Sunday 7th March 2021 at 23:59 CEST.Formalities:• The minimum amount of words to be used is 1000 and the maximm is 1500• You may want to include images/graphics etc. (for example from their website) to make your reasoning and argumention more visual and explicative• Font: Arial. Size: 12,5pts. Line spacing: 1,5. Text align: Justified.• Appendices and References, do not count towards the final wordcount but are strongly recommended (referencing websites, articles, books etc.)• The in-text References and the Bibliography have to be in Harvard’s citation style.Questions:1. Investment and the market of loanable funds (30%)a) Suppose that Inditex, a Spanish multinational clothing company, is considering building a new clothes factory.• Assuming that Inditex needs to borrow money in the bond market, why would an increase in interest rates affect Inditex’s decision about whether to build the factory? Use the graphical representation of the market of loanable funds to support your answer.• If Inditex has enough of its own funds to finance the new factory without borrowing, would an increase in interest rates still affect Insitex’s decision about whether to build the factory? Explain.b) Suppose now that Inditex and its lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be higher than they both expected.• Is the real interest rate on this loan higher or lower than expected?• Does the lender gain or lose from this unexpectedly high inflation? Does the borrower gain or lose? Explain.2. Economic growth and productivitya) What is the productivity of a country? How it affects economic growth? Use the theoretical concepts delivered in this course, the graphs and equationsexplained to answer the question.b) What components of GDP (if any) would each of the following transactions affect? Assume that you live in the US. Explain.1. Tom buys a new refrigerator from a domestic manufacturer. 2. Pedro hires a local contractor to build her a new house. 3. Ford sells a Mustang from its inventory to the Martinez family. 4. Ford manufactures a Focus and sells it to Avis, the car rental company. 5. The federal government sends your grandmother a Social Security check. 6. Your parents buy a bottle of French wine. 7. Honda expands its factory in Ohio.3. Unemploymenta) Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.• Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft. What would happen to the demand for labor in these two industries?

Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Open chat
Chat with us Live Here
Get in Touch with Our Live Chat Agents via WhatsApp on +1(346) 416-0954. Get Unlimited Access to Answers on Any Queries With Your Paper.