The Internet has allowed for increased trade in services sch as programming and technical support, a development that has lowered the prices of such services relative to manufactured goods. India in particular has been recently viewed as an exporter of technology-based services, an area in which the United States had been a maj
How do international sanctions, tariffs, quotas, and trade restrictions affect international trade and costs of production? How do tariffs and sanctions on the import of auto engines into the U.S. affect production?
The attached graph shows the calculator market for Venezuela, assumed to be a "small" country that is unable to affect the world price. (S)Venezuela is the domestic supply schedule and (D)Venezuela is the domestic demand schedule. 1. Consider the attached graph. Suppose the rest of the world supplies calculators to Venezu
A. Measuring Gross Domestic Product 1. Suppose, in a two-sector model, that individuals receive the following payments from the business sector: wages $520, interest $30 rent $ 10 and profits $80. Consumption spending is $550 and investment is $90. a. Find the market value of output and household saving b. What is the rela
Determining whether the following situations would contribute to the US current account surplus when dealing with international monetary systems.
Which of the following transactions would contribute to a US current account surplus and why? Make sure that you justify, in each case, why the transaction would or would not contribute to a current account surplus. a. IBM barters computers worth $100 million to Jamaica in exchange for hotel service worth $100 million on the