Problem
A. How does the Heckscher-Olin model predict the direction of trade based on comparative advantage generated by differences in factor endowments?
B. How does the Heckscher-Olin model predict the change in the relative price after trade?
C. According to the Specific factors model how are these three groups affected by trade
a. Owners of immobile factors in sectors that produce import competing goods
b. Immobile factors in sectors that produce exports
c. Mobile factors.
D. How does a Tarif affect the following?
a. Domestic producers.
b. Consumers.
c. The product price.
d. The import of the product affected by tariff.
E. How does currency appreciation/deprecation affect different groups?
F. What's interest parity condition?
G. How is money supply related to exchange rates?
H. When considering Central Banks' foreign exchange interventions, what do the central banks do in the foreign exchange market to stem currency appreciation or depreciation?
I. What is the relation between a country's current account balance and its net foreign wealth or net international investment position?
J. What factors affect a country's current account balance?