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- 1.Recently, Hong Kong is undergoing several protests against the extradition bills. (Note: define the Hong Kong as a home country and Japan as foreign country.) Explain in words how this political event affects (i) the amount of net exports of Japan, the safe haven country, and (ii) the value Japanese Yen (JPY) relative to other currencies. 2. Thanks to the establishment of Eastern Economic Corridor (EEC), the Thai governments propose to offer tax breaks for certain years to attract foreign companies to construct their production sites. Explain in words how this change in fiscal policy affects the national saving (S), domestic gross investment (I!), net capital outflow (NKO), the real interest rate (?), the real exchange rate, (e") and the trade balance of Thailand.Asap1. Summer1 Digital (Summer1) is a multinational corporation that produces and distributes telecommunications technology. Although its corporate headquarters are located in Kuala Lumpur, Malaysia, Summer1 usually buys its materials in several different countries using several different foreign currencies. The matter is further complicated because Summer1 often sells its products in other foreign countries. Summer1 is concerned with economic conditions that could adversely affect ringgit exchange rates. Explain Malaysias economic conditions in 2021. Evaluate the risks that need to be considered by Summer1 if it decides to continue buying materials from other countries including China and Indonesia as well as selling its products in countries such as Hong Kong and Japan. Discuss ways to manage and minimise the impacts of the risks associated with Techno1’s materials purchase and products sales in the foreign countries.
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