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1.Industrial policy is not efficient because it protects inefficient industries. True / False? Discuss.
2. Would an increase in an economy's GDP affect its trade patterns in the same way as an increase in GDP per capita? Explain fully.
3. If world prices increase, the current account balance of the importing country will improve.True / False? Explain.
4. Should high-income countries erect or maintain trade barriers against imports from low-wage countries?
5. Adam Smith wrote "An Inquiry into the Nature and Causes of the Wealth of Nations". How do you account, nowadays, for the income inequality between rich and poor countries? Do countries need to be democratic to be rich?
The economy's Investment Function, indicates that when the expected real rate of interest increases agents in the economy respond and what happens to the import price of this tablet and the number of tablets imported into the US?
Make a domestic supply and demand diagrams for an item in which the U.S. does not have a comparative advantage. Discuss what impact do foreign imports have on domestic price and quantity?
JetSet Travel, has been hugely successful in the distribution of stylish, comfortable shoes for travel. JTI sells its items to approximately 4000 retail accounts in the U.S. and a mix of independent distributors,
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.
What industries in the U.S. now have trade barriers and what is Foreign Direct Investment (FDI)? Provide an example of how the U.S. is involved in FDI.
Suppose that a country's real growth is 2% a year, while its real deficit is rising 5% per year. Can the country continue to afford such deficit indefinitely?
Discuss and explain why business and consumer expectations about the economy are more important when the Fed uses expansionary monetary policy then contractionary monetary policy.
What did Adam Smith mean when he wrote "Seldom do businessmen of the same trade get together but that it results in some detriment to the general public"?
Assume foreign income rise to 108,000 and interest rate is allowed to temporarily diverge from world economy interest costs. What are the equations for IS and LM curves?
Investment A has an expected value of five and a standard deviation of two. Investment B has an expected price of 10 and a standard deviation of five.
In September 1983, it took 245 Japanese yen to equal $1. More than twenty years later that exchange rate had fallen to 108 yen to $1.
Determine the disadvantages of forming corporate joint ventures between multinational corporations in the home and host country? Describe the theory of optimum currency areas, for example, the European economic community.
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