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What would be the macroeconomic justifications

Assignment Help Macroeconomics
Reference no: EM131984604

Assignment

TOPIC

• Choose ONE of the following questions listed below
• Develop your answer using theories studied in class. It is mandatory to structure your answer using the format structure listed below
• The work should be a maximum 1,000 words (Introduction to Conclusion)

STRUCTURE OF THE WORK

• Cover page: Name, date, School name
• Abstract: 100 words max
• Table of Contents
• Introduction: Background, scope and objectives of the work
• Body of Analysis: Use theories, facts, figures, etc. to support your statements
• Conclusion: Summarize your results
• Bibliography: Minimum of 7 different sources
• Appendix: Maximum 4

Q1

Singapore is a small open economy in Asia. Mr Ping, the most visible economist of this country, writes:"The reduction of government expenditures and the strong increase in exports would crowd out domestic investments in Singapore. But the inflow of foreign capital (into this country) would increase in both cases significantly". Do you agree with this statement?

Q2

The reduction of tariffs and non-tariff trade barriers in the context of the NAFTA aimed at increasing the consumer surplus and, consequently, enhancing welfare of people living in the US, Canada and Mexico. On the other hand, this event unfortunately created the concentration of market power on large firms, and significantly hindered the market penetration of small- and medium-sized firms in general. Do you agree?

Q3

Those austerity measures which were implemented in South Korea in the 1997 Asian financial crisis, aimed at not only improving the government's budget situation but also enhancing the competitiveness of this country. Why? What would be the macroeconomic justifications?

Q4

Some economists argue that in order to rapidly recover from the crisis, Greece should leave the Eurozone, (introduce the flexible exchange rate system), and decrease the prime interest rate (i.e. central bank interest rate). What would be the macroeconomic justifications for this policy recommendation?

Q5

Can increases in international trade between Africa and Europe reduce the migration of people from Africa?

Verified Expert

The topic chosen is question 5. the paper talks about the migration crisis in Europe from Africa and how international trade can help in curbing this situation.Recommendations have been made as to if trade can be the only solution to curb this situation.

Reference no: EM131984604

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