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What will happen to international prices, the level of exports, and export revenue?
When the government sells bonds to a foreign resident, what are the present and future effects on the BOP.
A Japanese carmaker that has been exporting to the US decides to invest $100 million to build a plant in the US. Predict subsequent changes in the BOP and NIL.
US firms own and operate branch plants in Central America where tens of millions of brassieres are exported. Why should these brassieres be counted as imports?
The Foreign Exchange Review of the First Wachovia Bank reported. Were the central banks buying or selling dollars? Illustrate with an FX market diagram.
What happens to the quantity of pesos demanded when the forward price of pesos rises? Who supplies pesos forward in the market?
Why a central bank supporting its currency by buying a surplus of its own currency is taxing its citizens. What sort of explicit tax would have the same effect?
Find the short run percentage change in import expenditure and export revenue with a 5% depreciation when the short run import elasticity is 0.3.
Suppose the EU launches a number of communications satellites improving their telecommunications. Predict the subsequent effect on the BGS in the US and the EU.
Find the quantity of rice demanded in Japan and the quantity of yen supplied at both exchange rates. Plot the supply of yen.
Find and plot the quantity of yen demanded to buy the autos at these exchange rates.
Suppose the nominal interest rate is 12% and inflation is 9%. Find the real interest rate. Starting with $100, find the nominal and real return to saving.
Suppose current price levels are P = $/good =100 in the US and P* = €/good = 150 in the EU. What should the exchange rate be?
Diagram the market for euro and illustrate an artifically low exchange rate. Using FX reserves, how could the central bank sustain this value?
Illustrate the FX market for the euro with an equilibrium exchange rate of .95 €/$. What happens to the current price of EU products in the US?
Speculate on whether a textile factory or an insurance company would be more likely to license. Explain which would be more likely to set up a foreign branch.
Explain why the domestic automobile industry disagrees with the domestic steel. How should domestic consumers feel about the issue?
Predict what will happen to the pattern of production and trade with the rest of the country.
What happens to the long run distribution of income when US firms decide to open factories in Mexico rather than in Texas?
Explain what happens to the income of the various types of labor and capital when the Japanese. How are the local effects different from the national effects?
Speculate on why economic integration has not been successful in Africa. Why has Japan not entered into economic integration?
Illustrate North and South trade with offer curves including protectionism of the North.
In some ways the EU acts like a single country and the separate countries in Europe like the states. Where might this sort of international cooperation spread?
How can a government host to an MNF encourage the positive externalities that come with MNF activity? How will domestic firms react?
Eastern European countries were integrated closely with Russia in the Soviet Union. How have they benefited through disintegration of the Soviet Union?