Describe the basic procedure of the Open Market Operations tool when it is used to engage in U.S. expansionary monetary policy. 

Analysis paper:

Prepare a written response to the prompt below using a word processor. Please save your file in .doc or .docx format. Your response should be complete and your final document should be five (5) to seven (7) pages in length, and should comply with APA writing requirements. All work should be in the student’s own words, and no more than 10% of the paper may have direct quotations, cited in APA format.  The focus of this paper is on critical application of module terms and concepts to the chosen business.

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Assignment Prompt:

Monetary Policy in the United States is conducted by the central bank known as the Federal Reserve (also known as the Fed), and it employs three basic tools that impact both the producers and consumers in the economy: Reserve Requirements Tool, the Discounting Tool, and the Open Market Operations Tool.

1. Describe the basic procedure of the Open Market Operations tool when it is used to engage in U.S. expansionary monetary policy.
2. Then, describe the basic procedure of the Open Market Operations tool when it is used to engage in contractionary monetary policy.
3. As a business manager monitoring the actions of the Federal Reserve, you observe that the Fed has been implementing contractionary monetary policy in the use of all of its basic tools, and this policy is likely to continue for the next year or so.  Based on this information alone, explain if this would be either a good or a bad time for your firm to engage in additional borrowing to help expand your business operations.
4. International monetary policy: Choose a non-U.S. country and research how that country has recently engaged in expansionary monetary policy. What country did you research? What mechanisms did the nation use? In what year? What was the goal of this policy? What was the impact of this policy?
5. International monetary policy: Choose a non-U.S. country and research how that country has recently engaged in contractionary monetary policy. What country did you research? What mechanisms did the nation use? In what year? What was the goal of this policy? What was the impact of this policy?

For each of the above responses, be sure to provide a detailed and well-supported response utilizing key terms and concepts associated with the module which meets the content requirements for completed work, and contains no spelling, grammatical, or punctuation errors.

1. Discussion Questions: Expansionary Monetary Policy Actions
   1. Conduct research on the web regarding a recent U.S. Federal Reserve expansionarymonetary policy action.
   2. Describe how the article you read for this post relates to the U.S. Federal Reserve and monetary policy.

• Choose a company that you would like to apply this policy to, and describe the company, its primary markets, and its business model (how it makes money).

1. What macroeconomic and microeconomic results could occur as a result of this policy?
2. How would this policy affect you as a business manager for the company you chose, in your decision making related to economies of scale?
3. How would this policy affect you as a business manager for the company you chose, in your decision making related to your business market opportunities?

1. Discussion Questions: Contractionary Monetary Policy Actions
   1. Conduct research on the web regarding a recent U.S. Federal Reserve contractionary monetary policy action.
   2. Describe how the article you read for this post relates to the U.S. Federal Reserve and monetary policy.

• Choose a company that you would like to apply this policy to, and describe the company, its primary markets, and its business model (how it makes money).

1. What macroeconomic and microeconomic results could occur as a result of this policy?
2. How would this policy affect you as a business manager for the company you chose, in your decision making related to economies of scale?
3. How would this policy affect you as a business manager for the company you chose, in your decision making related to your business market opportunities?

2. Module 7
   1. Discussion Questions: International Trade
      1. Research the web to find a recent article that discusses a forecast about international trade. This article can be from a global trade organization (such as the World Trade Organization), from a state’s commerce and trade website, or from business journals.
      2. What does the article forecast or predict about global trade as a whole, or trade between specific nations?

• What macroeconomic results could occur if the United States if this forecast is correct?

1. What microeconomic results could occur for the United States is the forecast is correct?
2. How would this forecast affect how U.S. business managers anticipate demand and supply, and how they anticipate pricing changes?

1. Discussion Questions: Expanding Your Business to Global Markets
   1. Imagine that you have started your own manufacturing business and want to expand into a global market in order to achieve economies of scale. Choose an industry to use for this discussion.
   2. Identify the industry your company will be in (i.e. what will you manufacture?)

• Describe the macroeconomic indicators that you will look for in order to decide where to expand.

1. Describe the microeconomic indicators that you will look for in order to decide where to expand.
2. What research/data would you need to determine how best to enter the foreign market?
3. How would you use that research/data to decide on timing, strategic partnerships, and financing?