Question
Please answer the following questions within ten paragraphs and explain how it relates to the terms of Macroeconomics What is hyperflation and how will it
Please answer the following questions within ten paragraphs and explain how it relates to the terms of Macroeconomics
What is hyperflation and how will it affect the future of Guyana?
INFO: Money is pouring into Guyana, which is quickly being transformed from one of the poorest countries in the Western Hemisphere into the world's fastest-growing economy, Exxon Mobil, the oil giant based almost 3,000 miles to the north.
Why did Exxon invest into Guyana? (Despite their recent past/command economy/unfair presidential elections)
INFO: Exxon has spent close to $1 billion in the local economy and on community outreach across Guyana.
Describe the competitive state between Shell and Exxon, explain why selling shares is important?
INFO: When Shell, then Exxon's partner in Guyana, pulled out of the country after dozens of failed exploratory wells, Hess pounced. Shell sold its shares in 2014 for $1 each, giving Hess a 30% stake in the project at what would turn out to be a bargain price.
How is revenue processed and why does it influence GDP per capita?
INFO: Hess said in an interview that he believes Guyana's government will have revenues this year of more than $1.5 billion through the production-sharing agreement it has with the consortium. Guyana's GDP per capita over the next three or four years is expected to rise to the level of Mexico or Brazil.
Where does corporate taxes fall into the category of Econ 101?
INFO: Under the new terms, future developers will have to pay a 10% royalty compared with 2% before. Corporate taxes will go up to 10% from zero, and the amount of annual revenue that energy companies will be allowed to take to recoup their costs drops to 65% from Exxon's 75%.
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