Reference no: EM131074735
Please answer the following with 3-5 sentences for each question. If there is a chart/graph/etc., only need 2-3 lines. Please don't include more than 3 images.
1. Provide data on levels of imports and exports throughout 2000-2010. (Annual numbers for each year is ideal)
2. Look at the value of imports and exports in real (inflation-adjusted) dollars or you can present them as a % of GDP.
3. Make connections to other aspects of the economy, such as the exchange rate. (An example might be a stronger dollar leads to more imports - since our dollar can buy more foreign currency than before, it also means it can buy more foreign goods and services (all other things being equal) and so would lead to an increase in imports.)
4. Relate the trade levels to events within our economy and within our trading partners' economies. (For example, the Great Recession saw incomes decrease in most of the Western world and we know that demand for imports is determined by income. If demand for goods and services decrease, we should see a decrease in exports and imports all around the affected countries, the US included. This shows the application of the ADAS model, with a shifting demand curve.)
5. Consider also any relevant trade agreements during this time to explore changes in patterns of trade based on comparative advantage, another key economic model.
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