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The oil price shocks of 1973 and 1979 have been largely interpreted as detrimental to the US economy, especially for spurting cost inflation. Can you conceive of any way in which the oil price shocks could have been beneficial to the US economy? Think about the role of the dollar as the world currency and about Nixon's decision in 1971 to get rid of the fixed exchange-rate regime of the gold-dollar system. The gold-dollar system prevailed from 1947 up to 1969 with the ounce of gold pegged at 35 dollars, and all other major world currencies were then pegged to the dollar. All major nations had their currencies set at a fixed exchange rate with the American dollar, but the dollar was the only currency convertible into gold. Nixon's unilateral decision brought instability to the international monetary system from 1970 to 1987, when countries then finally engaged in a new worldwide system of floating exchange rates with no gold backing.
Suppose that economic growth is slower in the U.S. than in its trading partners. Given a system of floating exchange rates, will the impact of this growth differential be for US with respect to exports and the value of the dollar?
The Internet has permitted for raised trade in services such as programming and technical support, a development that has reduced the prices of such services relative to manufactured goods.
The Microsoft trial has been one of biggest investigations of antitrust behavior since turn of the century. Supporting the governments side research and present a cohesive argument to the other side.
Compute the equilibrium levels of B and G consumed and produced in the Home country under autarky. What is the corresponding value of p?
What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
Based on government report, the U.S. can manufacture 3-computers or 3,000 cases of win with one unit of resources, while Germany can manufacture one computer or 5,000 cases of whine with one unit of resources.
Describe unequivocally why the foundation of trade has nothing to do with absolute advantage and only law of comparative advantage is relevant.
What is your opinion and brief explanation about the Microsoft antitrust case. Require your opinion about outcome and if the solution was fair? why or why not?
Determine if direct exporting, foreign direct investment, or licensing would be the best way to get the product to buyers in that foreign country.
The European Union is a supranational management that has been capable to overcome tremendous national diversity consider of how different Germany, UK, Italy, Spain etc...
Explain the differences between exporting firms, and import-competing firms and list any five entry costs that are borne by most exporting firms.
Use the table given below: Value in billions In each of following cases, indicate if GDP is affected, under what category and what happens to GDP.
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