Q1. a. Why does an exporter face a foreign exchange risk? How can the exporter hedge its foreign exchange risk?
b. What do you assume the interest on payday loans is too high or it is just right? Should Christians charge poor people interest on loans?
Q2. A manufacture procedure using 2 inputs, labor as well as capital, can be written as Q = 5LK where Q characterize output per day (tons). The unit costs of participation are $150 for labor (L) and $1,000 for capital (K). Conclude least cost amalgamation of L and K when output is produced at the rate of 1,000 tons per day. Conclude the necessary outlay for 1,000 tons / day?