Q3In 2016, Russia passed the Russian Homestead Act to give 1 hectare, or 2.5 acres of free land in the Russian Far East to Russian citizens as long as they live there for five years. This Far Eastern regions encompass more than 30% of Russia territory but only 4% of Russian population. The land is empty, especially compared to 110 million Chinese living across the long and unguarded border. Also, Chinese investment in the region is creating an influx of Chinese migrants.

Use theories you learn from this course to explain:

a. What is the benefit of giving away land for free?

b. Why the Russian Homestead Act applies only to Russian Far East?

Q4Consider the choice between fixed wage contract and commission-based contract. Under fixed wage contract, employees receive fixed monthly or hour wage. Under commission-based contract, employee receive a share of revenue.

Observation: while most employees receive fixed wage contract, salespeople typically receive a share of their sales revenue.

Use theories you learn from this course to explain this observation.