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Using the S/D of $ and S/D of ¥ (yen), answer the following questions. Make sure to draw both graphs.a. What happens to the p (price) and q (quanity) of $ and of ¥ when the Japanese demand more ipods?b. What happens to the p (price) and q (quanity) of $ and of ¥ when the US stock market crashes?
Foreign direct investment (FDI) refers to investments in which the investor retains a long-term interest and some degree of control over the enterprise in which the investment takes place.
Discuss and explain the major provisions of the North American Free trade Area (NAFTA) agreement. Briefly discuss the major benefits of NAFTA to the U.S. economy.
Flexible Exchange Rate - What are the advantages of flexible exchange rates respect to fixed exchange rates? Are there disadvantages?
The world economy retrenched in wake of a global financial crisis. Did globalization of capital markets contribute to this crisis? If so, what can be done to stop global financial contagion in future?
In March 2007, the US unemployment rate was 4.4 percent. In August 2008 the unemployment rate was 6.1 percent. Use this information to predict what happened between March 2007 and August 2008 to the numbers of A. Job losers to and job leavers
Suppose the dollar exchange rates of the euro and the yen are equally variable. The euro, however, tends to depreciate unexpectedly against the dollar when the return on the rest of your wealth is unexpectedly high, while the yen tends to apprecia..
The job losses to foreign nations have not been limited to low skilled rankings. And that may not necessarily be a real concern in long run.
Define NAFTA using the internet to gather some information about NAFTA and why and when it was started?
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.
The world price of wine is below the price that would prevail in the United States in the absence of trade. a.) Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under ..
Think that the following model of a small open economy, and Where X = exports, M = imports, e = the real exchange rate=50, Yf = foreign income = 2000.
Applying the basic circular flow model, explain why the value of businesses' output of goods and services equals the income of households.
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