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Reasons for International Specialization What determines which goods a country should produce and export?
In the absence of a contract between the parties, do the firms behave in an efficient fashion?
The World Trade Organization What is the World Trade Organization (WTO) and how does it help foster multilateral trade?
Arguments for Trade Restrictions Firms hurt by cheap imports typically argue that restricting trade will save U.S. jobs. What's wrong with this argument?
How did the steel tariff affect the domestic steel industry, the workers in the steel industry, workers in steel-use industries, and consumers?
Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why?
How low must a quota be in effect to have an impact? Illustrate and explain the net welfare loss from imposing such a quota.
How could you estimate the net welfare loss (deadweight loss) from such a diagram? What government revenues are generated by this policy?
How many baseball jerseys will you sell in Los Angeles and how many in Brooklyn?
On the Results page, go to the News Section. Read the article America Embraces Trade Discrimination. In what ways does the author criticize U.S. trade policy?
In the Basic Search box at the top of the page, enter the phrase import substitution. What is limiting the success of Uzbekistan's import substitution strategy?
Explain why domestic producers who supply a good that competes with imports would prefer? Which policy would domestic consumers prefer and why?
International Trade and Development From the perspective of citizens in a developing country, what are some of benefits and drawbacks of international trade?
From the past two years, choose one article about a foreign country. What did you learn about international finance in that country?
On the Results page, go to the News Section. Read the article China's Exchange Rate Reform on Right Track. What is China's exchange rate policy?
Why would China want its own currency to be undervalued relative to the U.S. dollar? How does China maintain an undervalued currency?
When is an industry competitive and when is it monopolistic? Read the article below about Google and its "monopolistic" tendencies.
Merchandise Trade Balance Explain why a U.S. recession that occurs as the rest of the world is expanding will tend to reduce the U.S. trade deficit.
How can a business manager be responsible for foreign transactions forecast exchange rates to better manage foreign exchange exposure?
What is a managed float? What are the disadvantages of freely floating exchange rates that led countries to the managed float system?
Show the (approximate) range of opportunity costs of capital at which the company should work the extra shift.
This finding seems to call for a rejection of the purchasing power parity theory. Explain why this index may not be a valid test of the theory.
Discuss what will happen to value of the dollar (against foreign currencies) if U.S. price level doubles and price levels in other countries remain constant?
How would such a surplus be offset elsewhere in the balance-of-payments accounts? What is the role of the statistical discrepancy?
Find one article in favor of globalization and international trade and one article against. Compare and contrast the arguments in the articles.