Reference no: EM133202166

Assignment:

1. Choose an international financial crisis to study. Describe the crisis, the countries affected, the evolution, effects of the crisis, and responses to it.  How did the crisis reshape the global economy, or the economy of that region?

2. The financial liberalization of the 1970's led to immense growth and more effective capital allocation, but also more turbulence. Large disturbances have rises from more innovative and risky assets, as well as contagion effects. Describe the liberalization (including globalization) of the financial markets - its evolution, how it occurred, the benefits, the consequences, etc.

3. Many emerging markets rely on a fixed exchange rate. In foreign exchange markets of the emerging market economies, there is evidence showing that even countries who claim they are floating their currency, are actually reluctant to let the nominal exchange rate fluctuate in response to macroeconomic shocks. This phenomenon in emerging market economies is referred to as a of floating", as Carmen Reinhart and others have detected and reported.

What, exactly, is "fear of floating"? What explanations have been offered by economists and other pundits for this phenomenon? How is the of floating" detected? What variables are necessary to perform this test? If volatility is the underlying concern, why don't more countries form currency blocs to deal with the problem with currency fluctuations? Explain.

4. Consider globalization and its impact on international economic relations. Define the term globalization. What role does globalization play in international economic relations? Provide specific examples of globalization's impact on the global political economy.

5. How does Brexit affect the economy of the European Union? Analyze the immediate impact of Brexit on the EU's economy. Predict future advantages and disadvantages of Brexit for both: Great Britain and the EU.

6. The China-United States trade war is an ongoing economic conflict between the People's Republic of China and the United States. The United States has set tariffs and other trade barriers in response to what the U.S. says are "unfair trade practices" and intellectual property theft. In response, China  has taken retaliatory measures. Describe the environment that led to the rise of the trade war, the measures used by both parties, the diplomatic reaction, and what you believe is the best course of action going forward.