Reference no: EM132224267

Question 1. In 1986, the world price of oil dropped sharply. Since the USA, at that time, was an oil-importing country, this was considered good for the U.S. economy. However, in Texas, that year there was a profound recession. Why? 120 words

Question 2. The U.S. labor movement-which mostly represents blue-collar workers-has traditionally favored limits on imports from less-affluent countries. Is this a short-sighted policy or a rational one in view of the interests of union members? How does the answer depend on the model of trade? 150 words

Question 3. Consider the following international transactions, assuming that you are from the UK. The structure of the Balance of Payments (BoP), as seen in the webinar, is reported in Table 1. Suppose that we want to input the transactions in the UK Balance of Payments. Complete Table 2 indicating how each transaction would be reported in the UK BoP, i.e. the sub account (Current/Capital/Financial ac-count, and the additional sub-category) and the sign with which it will appear, as in the example. [HINT: remember that in the Financial Account when we "import capital", i.e. when there is a financial inflow, it is recorded with a +, while an out-flow is a minus.]

Attachment:- questions.rar