Trade balance-interest rates-exchange rates are related

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Reference no: EM131197657

1. Explain how trade balance, interest rates, and exchange rates are related, and cite an example of how a rise or fall in one changes the others.

2. Does a deficit in China or the US change the overall advantage or disadvantage of trade? Why?

3. Explore how the cost and quantity of imports and exports, such as electronic equipment, may be challenged by the rise and fall of these rates.

4. Incorporate the fluctuations of supply and demand into the costs incurred and decide ways management calculates estimation for further product needs.

5. Explain the philosophy of "international crowding out" citing an example of how this may occur, and describe how this may occur, and describe how excessive borrowing in one county has affected interest rates in the US.

Reference no: EM131197657

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