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1. International trade leads to specialization and mutual interdependence. Every country specializes in a sub-set of products and relies on other countries for the supply of goods and services it does not produce. Events in one country will necessarily affect its trading partners.
Discuss any three examples of events occurring in one country and having a significant impact in nations that are its trading partners. You are also restricted to events that have occurred no earlier than 2010. Finally, be sure to document your sources.
2. Ricardo's theory predicts the direction of flow of trade, but not necessarily the volume. Volume is predicted buy factors similar to those that impact demand levels. List at least five such factors that are known to impact demand patterns.
Greece and Spain have introduced tax hikes, reduced paychecks of government workers, and made drastic spending cuts. These actions have caused violent protests. Should the U
Dicuss and describe the factors that determine who actually bears the burden of a tax increase on a specific goods, such as gasoline, cigarettes, or some other item.
If the demand for a domestic currency reduces in a country using a fixed exchange rate system, determine what must the central bank do to keep the currency value steady?
Due to the problems in countries such as Spain, Italy and Greece; Germany had (and is having) an inflow of workers looking for jobs (and better conditions) from these countr
Tariffs and import quotas promote economic inefficiency and reduce the real income of a nation. Economic analysis suggests that nations can gain by eliminating trade restricti
Using the AA-DD framework and assuming the flexible exchange rate regime, analyse how a permanent change in tastes of domestic consumers making them to prefer domestic goods o
What happened to the per worker productivity in Turkey? What happened to the steady state per work capital level in Turkey? What happened to the golden rule per work capital
Suppose two open economies A and B. In this economy only one good is manufactured for time t = 0 and price P(0,A)=1 Dollar and P(0,B) = 1,5 Euro.
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