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Economists are in almost universal contract that Free Trade is good for all nations. Explain why are they in such universal contract? Other groups in our nation, especially labor, are against Free Trade. Why is this the case? Can you propose a way that both groups can get together on this issue? Discuss.
Before one year Polish zloty was PLN 3.8000/USD. Since then the sloty has fallen 14 percent against the dollar. Price levels in the US have not changed, but Polish price has gone up 7 percent
Discuss similarities between the principle of comparative advantage and absolute advantage? Are there any differences between two principles?
Assume that the United States and Canada are planning to trade. Suppose there are only two goods in the economy: potatoes and rice.
China and Japan have 2factors of production, land and labor. Both countries produce 2-goods, corn, which needs more land, and computers, which needs more labor.
The United State imports Japanese cars with a domestic price of 5,000,000 yen and the yen or dollar exchange rate is 120 on January 1, 2003.
Determine which of the following transactions would contribute to a United State current account surplus and why? Make sure that you justify, in every case, explain why the transaction would or would not contribute to a current account surplus.
Think the yearly budget deficit in the U.S. versus GDP, How does this compare to other industrial economies? What is your opinion on this relationship of budget deficit to GDP?
Suppose you wants to determine the total intrinsic value of a large gas and electricity utility company. This company has publicly trade stock and has been paying a regular dividend for several years.
Assume Bill and Hillary notice values are higher in high rent districts. Bill says it's because high rents cause high values. Hillary says its because high values cause high rents.
Smith is a currency trader and reviewing forward foreign exchange rates. His investors have made several statements regarding foreign exchange rates.
When the United States imposes a tariff or quota on imports, who pays it? Who profits from a tariff or quota and how do changes in interest rates, inflation, and income affect exchange rates?
You are between jobs and have decided to relocate to a city west of the Mississippi River, but you are unsure of what size or type of city you and your family can afford to live in.
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