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One of your relatives advices to you that our nation should stop trading with other countries because imports take away jobs and lower our national well-being. How would you try to convince him/her that this is probably not the right way to look at international trade and its effects on the 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...
Describe unequivocally why the foundation of trade has nothing to do with absolute advantage and only law of comparative advantage is relevant.
Big businesses and small businesses now compete in a truly global economy. To be successful in another nation it is essential to understand and appreciate the cultural differences that exist.
Suppose if airline industry was operating under other market structures, how would equilibrium price and quantity differ? Would it be higher, lower, or same?
Which political system describes best the governance system of the EU? Is the governance system of the EU democratic? Why ‘yes', or why ‘not'?
The United Kingdom pound is trading at 1.82 U.S. dollars per United Kingdom pound. There is purchasing power parity at this exchange rate.
The extensive application of protective tariffs destroys ability of international market system to allocate resources efficiently.
Assume that the country A has only three categories of traded goods and that A's imports and exports of the three goods are as follows:
Suppose you are a fixed income fund manager based in euroland. Expected return of the EUR bond market is 4.4 percent and risk 5 percent, expected hedged return of the United Kingdom bond market 5.5% and risk 5.5 percent.
Assume that the government buys are increased from 100 to 150. How much does the IS curve shift? What are the new equilibrium interest rate and level of income? Describe it.
The demand for money in a country is given by, Assume that the money supply is set by the central bank at $1,198,000. Determine the equilibrium interest rate.
Doug Wyatt is a currency trader for Global Currency Exchange Corporation Wyatt has compiled the following data concerning the U.S. dollar or Australian dollar exchange rate.
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