International Monetary Fund data indicate that, with 2000 = 100.0, Japan's export price index in 2006 was 95.3, its import price index in 2006 was 127.2, its export quantity index in 2006 was 142.4, and its import quantity index in 2006 was 120.0. Given this information, a calculation of Japan's "income" terms of trade for 2006
Explain why you agree or disagree with the following statements: a. A country that grows faster than its major trading partners can expect the international value of its currency to depreciate. b. A country 's currency will appreciate if its inflation rate is less than that of the rest of the world.
Explain the national defense, declining industries, and infant industry arguments for protecting a domestic industry from international competition.
Describe and assess how international law has addressed matters of trade, human rights, and the environment. How have these efforts contributed to developing or retarding the construction of global civil society? Why?
Consider a scenario where you are an entrepreneur planning to expand your production of kitchen gadgets. You need to pay back a loan of $5,000,000 over five years. The interest rate is 5% and your other operational costs are $10,000,000 per annum. The first year after the investment your sale is 95,000 boxes of kitchen gadgets a
I am in need of help with the below questions. The questions are based on the case study listed under question number 5. The questions are to be answered with the topic of Micro- Governement and Market Failure. 1. Why do farmers in the U.S. demand such research efforts? 2. Is this another form of a price support system
1.Assume last year's real GDP was $7,000 billion, this year's nominal GDP is $8,820 billion, and the GDP-deflator for this year is 120. What was the growth rate of real GDP? Does this show an improvement in economic welfare? 2.Suppose the value of the French Franc in terms of the dollar is 50 on October 12 , and 44 on Oc
Possible models: Strategic trade theory, Krugman model, Rybczynski theory, Stolper-samuelson and Heckscher-Ohlin model and the optimal tarriff theory. a. explain some models that predict the effect that reducing protection (Tariffs) will have on factor prices (Labour and capital)? Use these models to analyse the effect that
Economics, International Trade - Other Dominican Republic and Trade Restrictions The company you work for is expanding its business and would like to begin to trade with another country. Go to http://www.ustr.gov/assets/Document_Library/Reports_Publications/ 2004/2004_National_Trade_Estimate/2004_NTE_Report/ asset_uplo
Study material: Economics, Principles,Applications,and Tools O'Sullivan/sheffrin/Perez. Chapter 20,24,31 You've been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70,000 workers to produce 300,000 units of output per day. The daily wage (per work
What parties benefit from the imposition of tariffs and quotas? What parties lose from the imposition of tariffs and quotas?
1. Based on your reading, which market structure is more applicable for the market for building commercial aircrafts, when there are two major manufacturers of the commercial airplanes and little possibility of entry by new firms: a. perfect competition b. monopoly c. oligopoly d. monopolistic competition 2. Based on your
Which of the following is a normative statement? a. international trade leads to expanded consumption opportunities, b. higher expenditures on health care will reduce infant mortality rates c. we would all be better off if we could reduce our dependence on oil imports d. increased defense spending will lead to higher budge
Why has Japan's current account surplus been smaller than its trade surplus in recent years? Explain why Japan's official reserve transactions balance has been close to zero.
Suppose that the production technology of a self-proclaimed "infant industry" permits economies of scale. Suppose also that the same technology is available to foreign producers. Is there a valid argument for protection in this situation from the perspective of the world as a whole? Why or why not?
If the United States productivity growth does not keep up with that of its trading partners, the United States will quickly lose its international competitivesness and not be able to export any products, and its standard of living will fall. Critically evaluate this statement.
Please help with the following problems. Consider the same setup as previous questions, but instead of introducing free trade (free movement of goods and services), we introduce free mobility of skilled and unskilled labor. (a) In what direction will unskilled labor migrate? What about skilled labor? Why? (b) When would
Describe the difference between countervailing duties and antidumping duties. Has the United States ever imposed such duties?
What are the arguments for & against free trade? How does the internet affect foreign trade?
Your boss in the U.S. home office wants to know your perspective on the following. 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 and costs at Acme? Do you agree
3. Draw an initial free-trade equilibrium for a small country facing fixed world prices, depicting its production possibilities frontier and relevant indifference curves. a). Indicate in your diagram the rate of the tariff that would completely wipe out trade between this country and the rest of the world. b) What happens
1. Consider a world of two goods, automobiles and lumber, and two countries, the United States and Canada. a) Using the Basic Trade Model, graphically depict autarky equilibria for the two countries in which the United States has a comparative advantage in automobiles. b) Next, assume that acid rain in Canada is an increas
Your boss in the U.S. home office wants to know your perspective on the following. 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 and costs at Acme? Do you agree
Below is an excerpt from a September 10, 2006 Associate Press article on the breakdown of global trade negotiations. The G-20 issued a statement Saturday indicating developing nations we unlikely to back off their demands that developed nations do away with subsides and tariff barriers from their farm products. "Most of t
Why are monopolies bad for society? Please name 3 firms and discuss reasons how they maintain their monopoly status; and make predictions on how long these firms will stay monopolies.
1.Travel to France with $3000, exchange for Euros, spend 1080 Euros in France. Go to Russia spend 2500 rubles, go to Britain spend 399 pds, return to US. How many dollars did you spend.? 2.When the U.S. imposes a tariff or quota on imports, who pays it? Who benefits from a tariff or quota? What is the impact of a trade surpl
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
It has been estimated by the U.S. International Trade Commission that the Japanese automobile import restrictions during the 1980s had the effect of increasing the average price of a Japanese car in the range of __________. a $0 - $500 b $500 - $1000 c $1001 - $1500 d $1501 - $2000 e over $2000
How do firm's prices its revenues and costs. Give me an example
What role does the government play when it comes to quotas? Can you explain, in economic terms, how quotas work? I've looked at some diagrams but do not understand them. How do quotas affect international trade & domestic manufactures? Who wins when quotas are used?