(a) China watches big cash transactions to stem capital flight BEING - China will start tracking large-sum cash transactions to help stem capital outflows as the trade war with U.S. continues to erode its dollar holdings. Source: Nikkei Asia, June 27, 2020, Retrieved from blips Masia nikkei.com BusinessMarkets CurrenciesiChina-watches-big-cash- transactions to stem-capital flight Describe the impact of capital flight on China open economy, Include a three-panel diagram, the market for loanable funds, net capital outflow and the market for foreign currency exchange to demonstrate the effects. (13 marks) (b) As of November 11, 2020, Washington, California, and Massachusetts had the highest state minimum wage of $13.50, $13, and $12.75 per hour, respectively. Many states will be bumping their minimum wage rates in 2021. In the meantime, a number of companies have cut to the chase and gratified their workers by hiking their own entry-level wages. Here are eight companies that have raised the minimum wage for their employees such as McDonald's. Starbucks, Bank of America, Wells Fargo, Aetna, Walmart, Ikea, and Costco. Other prominent companies felt compelled to raise their minimum wages, too. These include Target. TJ. Maxx, Amazon. com, and Gap. All of these companies reported improved customer service, happier workers, savings, and more professional candidates seeking to work for them. Source: Investopedia, November 12, 2020. Retrieved from https /www.investopedia.com/articles/markets-economyis1416/top-8- companies-raising-minimum-wage-med-sbux.asp Explain FOUR ways how raising wages by these firms lead to larger profits for the organization. (12 marks) (Total: 25 marks)