Reference no: EM131868495

International Trade: Economic Analysis

Requirements

This assignment has two parts. Please be sure you complete both parts before submitting.

Part I

• Analyze the concept of exchange rate:

o Explain how the dollar price of euros is determined.
o Identify a factor that can increase the dollar price of euros.
o Identify a factor that can decrease the dollar price of euros.
o Explain why a rise in the dollar price of euros means a fall in the euro price of dollars.

• Explain the purchasing-power-parity theory of exchange rates, using the euro-dollar exchange rate as an example.

Part II

• Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota.

o What is the net outcome of either tariffs or quota for the world economy?
Organize your assignment logically with appropriate headings and subheadings.

Additional Requirements

• Include a title page and reference page.
• Include 3-4 pages, not counting title page and reference page.
• Use at least three scholarly or professional resources.
• Use APA format for citations and references.
• Set your assignment in Times New Roman, 12 pt., double spaced.