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Question1. Intra-industry trade involves nations exporting and importing the similar goods. Why would nations export and import same or similar items?Question2. You are an adviser to a foreign government. Until now, government policy has been to severely limit imports, which has resulted in a low level of exports. The government is now planning a policy to allow freer trade. What are the three strongest reasons that you can offer to the government about why the policy shift will be good for the country?Question3. Do you agree or disagree with this statement? "Opening up free trade hurts people in import-competing industries in the short-run, but in the long-run, when people and resources can move between industries, everyone gains from free trade." Explain.
"Time" magazine, Canadian edition, has recently published an article on U.S. agricultural subsidies titled "Why our Farm Policy is Failing", November 2nd, 2007.
The health care industry desires to get bigger and that its only option is a merger. Now the industry is confronted with the government regulations to oversee merger.
Using demand and supply analysis, answer the questions. Determine the effects on the exchange rate between the British pound and the Japanese yen from:
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.
Determine what jobs are created through free trade and what jobs are lost when countries restrict free trade? Identify the areas in which U.S. applies protectionist policies.
In 2006 the hourly cost to workers per German industrial employee was $33. The hourly expense to employers per United States industrial employee was $23.65 while the average cost per Taiwanese industrial worker was $6.38.
n the flexible exchange rate system, discuss the effects of the following events on the exchange rate between U.S. dollar and Japanese Yen: Please indicate whether US$ will appreciate or depreciate.
Assume that the United States and Canada are planning to trade. Suppose there are only two goods in the economy: potatoes and rice.
Assume that one nation subsidizes is exports and other country imposes a countervailing tariff that offsets effects, so that in the end relative prices in the second country are unchanged.
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.
Environmentalists discuss that the trade liberalization harms the environment. The decisions of World Trade Organization in particular have been the subject of much criticism.
Describe some models that forecast the effect that reducing protection Tariffs will have on factor prices Labour and capital.
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