Effect of a higher exchange rate on exports and imports

Assignment Help Microeconomics
Reference no: EM13889613

Write 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers. Show work for all calculations.

1. Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

2. Because wage rates are so low in Africa, why don't Microsoft, Cisco and other major corporations close down their American operations and move to Africa?

3. Consider the foreign exchange market for Japanese Yen and Dollars. Assume a market where the U.S. dollars are on the x axis as shown in the background material. Indicate whether the dollar would APPRECIATE or DEPRECIATE if the following events occur (be sure to explain your answer such as including reference to the demand or supply curve):

a. The interest rate in Japan is lowered.

b. Prices are lower in U.S.

c. Higher US interest rates.

4. What is the effect of a higher exchange rate on exports and imports?

Reference no: EM13889613

Questions Cloud

Expalin differences between a product cost and a period cost : Tina Burke is confused about the differences between a product cost and a period cost. Explain the differences to Tina.
Facility location decision : How would a facility location decision for our company differ from one for a service organization? Discuss five metrics which should be used when selecting a new production facility location.
Imagine demand for money decreasing : It might be hard to imagine demand for money decreasing --- the idea of anyone wanting less money doesn't sound rational --- but it is absolutely true that the demand curve for money is downward sloping. That means the quantity of money demanded goes..
Effects of methylphenidate on dyslexia : Neuroscience Seminar- Effects of methylphenidate on dyslexia. WHY is this research important? WHAT research is already done and will be done
Effect of a higher exchange rate on exports and imports : What is the effect of a higher exchange rate on exports and imports?
How are manufacturing costs classified : How are manufacturing costs classified? Mel Finney claims that the distinction between direct and indirect materials is based entirely on physical association with the product. Is Mel correct? Why?
Upstream supply chain : Upstream Supply Chain. What are the key supplies and materials needed to produce this product? Include not only the materials that go into the product, but also any packaging that is needed. Identify as many of the actual supplier companies as you..
What are some obstacles coca cola might face with production : What are some obstacles Coca Cola might face with production in another country?
Name two changes to the economy : Refer to figure above. Name two changes to the economy that would cause the demand curve for money to shift to the right from Md1 to Md2.a) Suppose the economy is in a recession and the Fed pursues an expansionary monetary policy. This would be depic..

Reviews

Write a Review

Microeconomics Questions & Answers

  Searching for useful sources

Q1. It is important to use relevant, accurate, and reliable sources in a research paper. What do you need to consider when searching for useful sources? How do you know when sources are reliable? What are some warning signs that indicate you s..

  Explain surplus and shortage

Consider the Law of supply and the determinants of supply and describe Efficient markets theory - Explain Surplus and shortage.

  Reduce capital indebtedness through refinancing at more

Firms can shift their marginal cost curves to the right, resulting in higher outputs at the same or lower maximum-profit prices. This can be done by

  Indifference theory can explain all rational choices and

Indifference theory can explain all rational choices and behavior..Try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money

  Find the total product and average product

Find the total product, average product and marginal product for integer values of L from 1 to 9. Plot the total product on a graph and the average and marginal product on another as shown in class.

  Identify one real-life example of a market structure

Identify one real-life example of a market structure in your local city and relate your example to each of the characteristics of the market - Find the profit maximizing price and quantity and the resulting profit to the monopoly.

  Why do economists emphasize efficiency as the significant

why do economists emphasize efficiency as an important goal of public policy? why is compensating volunteers to

  Write the production function for strawberry harvesting

Write the production function for strawberry harvesting. Find the cost function for strawberry harvesting. What is the minimum price per box that Ms. Simon must receive in order to warrant picking the strawberries?

  Why do points on the utility possibility curve represent

why do points on a utility possibility curve represent efficient allocations of resources? why must the utility

  Organic farmer spreads manure over his fields as fertilizer

Externalities.  A local organic farmer spreads manure over his fields as fertilizer. It smells bad. Her neighbors are also concerned about possible water contamination. What are the conditions of an efficient resolution to this dispute

  What is the steady - state level of output per worker

What is the actual level of output per worker - What is the steady - state level of output per worker?

  Question about minimum wage

Assume government forced a minimum wage above what otherwise would be equilibrium wage rate for this segment of the labor market.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd