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Question1. Discuss what is the gain for a country that results from specialization in the manufacturing of items for which there is a comparative advantage?
Question2. Explain why do governments intervene in international trade and develop restrictive trade policies?
Suppose you are a fixed income fund manager based in euroland. Expected return of the EUR bond market is 4.4 percent and risk 5 percent, expected hedged return of the United Kingdom bond market 5.5% and risk 5.5 percent.
Explain at least three important distributional challenges associated with global climate change policy also describe four of the advantages of global price approaches to climate change advocated by Nordhaus.
Questions based on International Business
What is PM firm's optimal organizational structure? How does it impact PM firm's international market expansion plans? How would it change as PM firm adopts additional international market expansion strategies?
If the European euro were to depreciate relative to the United State dollar in the foreign exchange market, would it be easier of harder for the French to sell their wine in the U.S.?
Burger King Beefs Up Global Operations
Intra-industry trade involves nations exporting and importing the similar goods. Why would nations export and import same or similar items?
Suppose the following data, and answer the question below. China and England are international trade partners. The following information are expected payoffs for the two countries.
Assume that the you test Linder hypothesis through comparing Germany's absolute difference in per capita income from each of its trading partners with size of Germany's total trade with each respective partner.
Suppose the effect of monetary policy on the exchange rate value of the dollar. Estimate the effect of expansionary monetary policy on each of the following.
Assume that the Kiribati can manufacture 1000 tons of breadfruit or 500 tons of fish, and that Tuvalu can manufacture 750 tons of breadfruit or 1875 tons of fish.
In a day of production, companies in Angola can manufacture 200 liters of oil or 100 kilograms of tungsten. Companies in Namibia can manufacture 160 liters of oil or 60 kilograms of tungsten.
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