Calculate what happens to terms of trade index for country

Assignment Help Macroeconomics

Reference no: EM131484822

Question: Using the definition in note 4 for the terms of trade:

a. Calculate what happens to the terms of trade index for some country between 1995 and 1997, if, in 1995, the price index for its exports was 110 and the price index for its imports was 108; and in 1997, the price index of exports was 105 and the price index of imports was 112. Has there been an increase or a decrease in this country's terms of trade? If the country wishes to buy exactly the same physical quantity of imports in 1997 which it purchased in 1995, how much more, or how much less, will it have to export, in physical terms, in 1997 compared to 1995?

b. Examine what has happened to the terms of trade for two countries of your choice over a period of at least five years, using data in either the World Development Report or the Human Development Report. Does the trend you discover tend to support or refute the Prebisch-Singer hypothesis? Explain.

Reference no: EM131484822

Questions Cloud

Can you speculate on what a vicious circle might be : Briefly explain the ideas of virtuous circles. Can you give two different examples of virtuous circles that might affect a less-developed economy?

Identify some of the strengths weaknesses and opportunities : identify some of the strengths, weaknesses, opportunities, and threats to the organization as it considers its future business goals.

How does one easure that surplus : What did Lewis mean when he wrote that there was a surplus of labor in agriculture? How does one easure that surplus? To what standard is labor in surplus.

Which of the following is not an abiotic factor : When plotting the number of individuals in a population against time the data yield a J-shaped curve, which indicates which of the following?

Calculate what happens to terms of trade index for country : Calculate what happens to the terms of trade index for some country between 1995 and 1997, if, in 1995, the price index for its exports was 110 and the price.

Define the labor market : Define the labor market and explain how it can affect compensation. Identify the three greatest strategic challenges Papa John's currently faces.

Explain what decision did you make : What decision did you make? How prepared were you to make the decision? What was your thought process as you were making the decision?

Who are considered the mid-level providers : Who are the providers of health services? Who are considered the mid-level providers? Where do allied health, providers fit in the realm of patient care?

What is meant by the international division of labor : What is meant by the "international division of labor"? What function does the periphery play vis-à-vis the center countries in this division of labor?

User Account

All Pages