What problems associated with having negative trade balance


Homework: Supply And Demand in a Global Market

o The demand for labor is said to be a derived demand. What is the meaning of derived demand? How does this concept help to determine the demand for labor?

o What are some of the factors that determine the supply of labor in a market? What significant factors have changed the supply of labor over the last twenty years?

o How does a firm determine its prices and the quantity of labor required in the resource market during a specific period?

o Why do income inequalities exist? How are income inequalities measured? How have income inequalities changed from 1980 to the present?

o What is the role of the U.S. government, in terms of dealing with the problem of income inequalities? What are the arguments, for and against, government involvement in this area?

o Why do nations trade? What is meant by the concept of "Comparative Advantage? Could a nation be better off economically, if it practiced an isolation policy?

o The United States has had a significant trade imbalance for several years. What are the problems associated with having a negative trade balance? What can be done to correct the imbalance?

o How are exchange rates determined? what is the significance of currency devaluations to the home country? to other countries?

Format your homework according to the following formatting requirements:

o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.

o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.

o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.

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Macroeconomics: What problems associated with having negative trade balance
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