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In the offer curve analysis, why must an excess supply of one good be associated with an excess demand for the other good?
What conceptually would happen to Iraq's terms of trade and volume of trade? Illustrate and explain your answer using offer curves.
Describe the likely shapes of the offer curves of the importing countries-shapes that enabled the OPEC countries to pursue their trade strategy successfully.
Calculate the commodity terms of trade and the income terms of trade for this country for 2010. Interpret your results.
If the K/land ratio for Belgium is higher than that for France, what kind of products might Belgium export to France? Why?
What impact would the threat of imports have on a monopolist who had never before been faced with foreign competition?
Explain why you might expect to see certain capital owners and labor groups arguing against expanding trade in a capital-abundant country.
Complete factor price equalization cannot be achieved in the presence of transportation costs. Agree? Disagree? Explain.
Even though their relative factor abundances differ widely. What might explain this apparent contradiction of the Heckscher-Ohlin model?
How might the existence of factor-intensity reversals be a reason for the Leontief paradox? How might the existence of demand reversal?
How do you explain why many developing countries also have relatively high import barriers on labor-intensive goods?
Build a case against the view that increasing openness of the U.S. economy has been the primary factor causing increased income inequality in recent decades.
Explain what the issue or policy is and the approach you expect to take in analysing it. Include three relevant references in the proposal.
Explain, using the IS/LM/BP model, how a rise in the expected appreciation of the foreign currency can lead to an increase in domestic interest rates.
Why does monetary policy get a boost from the external sector under a flexible-rate system?
Under what capital mobility conditions is fiscal policy totally ineffective in influencing income? Explain why this result occurs.
What difficulties emerge if the various countries have different interest rate targets for attaining domestic inflation and/or growth objectives?
Explain how the adoption of such a policy stance would affect Japan's national income, current account, capital account, and money supply.
Why does devaluing the domestic currency have an expansionary effect on the economy?
Analyze the source of the crisis and the specific resolution of the issue.
Describe different types of nontariff trade barriers. Summarize the history of trade protection in the United States.
Explain why a country with a current account surplus (such as China) can be said to be saving more than it invests.
Suppose that the firm obtaining protection in a Krugmantype framework has marginal costs. Why would Krugman's results follow if this were true?
Why might the use of a tariff to decrease aggregate unemployment in a country eventually generate an increase in aggregate unemployment in that country?
Why does persistent dumping into the domestic country necessarily mean that a foreign government is subsidizing the foreign exporting firm?