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Economics of International Trade
1. A country has a floating exchange rate. Government spending now increases in an effort to reduce unemployment. What is the effect of this policy change on the exchange rate value of the country's currency? Under what circumstances does the exchange rate change reduce the expansionary effect of the fiscal change?
2. If most countries adhered to a system of fixed exchange rates, global inflation would be lower. Do you agree or disagree with that statement, and why or why not?
Find National Trade Data - Determine the trade balance between the U.S. and China for the most recent five year period.
Assume that 2-people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and increase chickens.
The U. S. has committed itself to creating a free trade zone between the U.S., Canada and Mexico. Why might this be important Relative to imports and exports to other nations, what is the size of these two North American trading partners trade rel..
suppose the one-year forward euro exchange rate is 1.26 per euro and the spot exchange rate is 1.2 per euro. what is
The U.S government spends over $15.8 billion in its Food Stamp Program to provide millions of Americans with the means to purchase food. These stamps are redeemable for food at over 160,000 store locations throughout the nation
How would a substantial appreciation in the European euro in the foreign exchange market affect the quantity of imports of European products by the U.S. How would such an appreciation of the European euro affect travel by Americans to Europe
Assume the free trade market price of a car is $10,000. It contains $5000 worth of steel. The importing country imposes 25 percent tariff on car imports.
Describe breifly about Critical evaluation of Adam Smith's Theory and outline of its purest form and what is its critism.
Discuss the differences between the long run and the short run. What are the implications for the firm of making decisions in the short run and making decisions in the long run? Discuss the limitations and freedom of the two time horizons.
Assume that your shareholders have only United States stocks. Would you expect an overseas investment to have above or below-average risk for them?
What is the forward premium on euros (the forward discount on dollars)? What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?
Explain how this deveopment will development will affect U.S net capital outlfow. then explain how it will affect U.S net exports by using a fomula fromt eh chpater and by drawing a diagram.
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