Assignment:
Part 1
Financial Economics
Consider the following as you read:
• What is the time value of money and how can compound interest be used to calculate the present value of any future amount of money?
• How is the word "risk" used in financial economics and what is the difference between diversifiable and non-diversifiable risk?
Part 2
International Trade
Consider the following as you read:
• What is the validity of the most frequently presented arguments for protectionism?
• What are the economic effects of tariffs and quotas?
Part 3
The Balance of Payments, Exchange Rates, and Trade Deficits
Consider the following as you read:
• What are the causes and consequences of recent U.S. trade deficits?
• What is the balance sheet the United States uses to account for international payments made/paid and for international payments received?