11 Int Finance

International Macroeconomics a) Why do economists typically view trade as beneficial to all countries involved? Explain what are the gains to trade. Are all individuals within a country better off as a resultof trade with other countries? Explain your reasoning.  b) Consider a country that adopts a fixed exchange rate regime. What are the potential benefitsof adopting a fixed exchange rate regime? What are the potential costs of adopting a fixedexchange rate regime?

View the data below for the exchange rate between the US dollar and the Japanese yen.   How many yen could you get per dollar at the earliest date shown on the chart? Explain. How many yen could you get per dollar at the most recent date shown on the chart? Explain. Has the dollar appreciated or depreciated in value over time? Explain.

News Analysis: Exchange rates hold the key to trade between Japan and the United States (NEW) 3. Exchange rates and U.S. exports: A graphical relationship The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to see U.S. exports on the same graph as Japanese exports in a later problem.) EXCHANGE RATE (Dollars per yen) Exports from the U.S. Exports from the U.S. ? ( · X

Case I: The Effect of War on the Economy of El Dorado If a war broke out abroad, it would affect the El Dorado economy in many ways. Use the model of the large open economy to examine each of the following effects of such a war. What happens in the El Dorado to saving, investment, the trade balance, the interest rate, exchange rate, price level and unemployment? (To keep things simple, consider each of the following effects separately.) Questions a. The El Dorado government, fearing it may need to enter the war, increases its purchases of military equipment. b. Other countries raise their demand for high-tech weapons, a major export of the El Dorado. The war makes El Dorado consumers uncertain about the future, and the consumers save с. more in response. d. Analyze the combined effects of (a) & (b) on Aggregate Demand (AD), Money Supply and Money Demand in the El Dorado Economy.

QUESTION 4 Consider the following two figures. Japanese Yen per 1 uS Dollar Graph Danish Krone per 1 Euro Graph 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:48 UTC 12 Mar 2018 16:00 UTC - 11 Apr 2018 16:10 UTC 107.07591 7.4648491 106, 39703 7.4552022| 1d5.1Ma16 105.03928 7.4359083. 104.36040 7.4262613 Apr9 Mar 12 Mar 12 Mar 19 Mar 26 | Apr 2 Apr 2 | Apr 9 Mar 19 Mar 26 Which of the following statements is correct? A. the left figure describes a fixed exchange rate; the right figure describes a fixed exchange rate O B. the left figure describes a flexible exchange rate; the right figure describes a flexible exchange rate C. the left figure describes a fixed exchange rate; the right figure describes a flexible exchange rate D. the left figure describes a flexible exchange rate; the right figure describes a fixed exchange rate

QUESTION 12 Table 1 shows the summary of China's balance of payments and net international investment position. Please mark the only INCORRECT statement about Table 1. Source: IMF BALANCE OF PAYMENTS (Percent of GDP) Current account balance Trade balance Services balance Net international investment position Gross official reserves (billions of U.S. dollars) Table 1. China: Selected Economic Indicators¹ 2017 2018 2016 1.7 4.4 -2.1 17.7 3,098 1.5 3.9 -2.1 -2.1 16.8 15.2 3,236 3,168 0.2 27 2019 2020 0.7 1.8 2.7 3.5 -1.8 -1.0 16.0 14.5 3,223 3,357 2021 1.6 3.0 -0.7 13.8 3,448 2022 1.5 2.7 -1.0 14.0 3,696 China's low stock of gross official reserves suggests that the nation is vulnerable to a balance of payment crisis and a large a. devaluation of the CNY b. China's large NIIP should be consistent with the fact that it supplies capital and invests in the rest of the world c. The fact that China has a large and positive NIIP position means that the has relatively high savings rates d. China…

Find US net export (current account balance) and its relation with US savings and investment. Draw a figure to show it.

Exchange rate topic: When the exchange rate changes, will the European divers on vacation overseas pay a different price for their scuba equipment rentals?

The diagram to the right most likely shows the impact on the Canadian economy of A. an increase in the worldwide demand for petroleum products, a major Canadian export good. B. changes in world tastes in favour of Canadian goods. C. a decrease in foreign incomes. D. an outbreak of inflation outside of Canada. If the Bank of Canada makes no transactions in the foreign-exchange market, the Canadian dollar will undergo a depreciation. Use the three-point curve drawing tool to show how a flexible exchange rate serves as a "shock absorber" to the external shock depicted in the accompanying graph. Carefully follow the instructions above, and only draw the required objects. …………. Price Level (P) FO Real GDP (Y) ASO AD1 ADO Q

Question-1) -a) What is schematic balance of payments account table? Draw and explain.  b) How does international trade effect economic growth?

9. Balance of payments The following tables show a hypothetical balance of payments statement for the United States. (Note: All values are in billions of dollars.) Complete the tables by filling in the missing cells. (Hint: Use the negative sign for all debits, and assume that the total balance of payments equals zero.) Balance of Payments CURRENT ACCOUNT Debits Credits Balance U.S. Merchandise Exports 500 .S. Merchandise -400 UImports Balance of Merchandise Trade U.S. Service Exports U.S. Service Imports -340 Balance on Service Trade 80 Balance on Goods and Services Income Receipts of Americans from Abroad 650 Income Receipts of Foreigners in the U.S. Net Income Receipts 35 Net Unilateral Transfers Balance on Current Account -615 Income Receipts of Foreigners in the U.S. Net Income Receipts 35 Net Unilateral Transfers Balance on Current Account -615 CAPITAL ACCOUNT Debits Credits Balance Foreign Investment in the U.S. 900 U.S. Investment Abroad -550 Balance on Capital Account OFFICIAL…

Question Match the term to its correct definition. Column A 1. 2. 3. 4. 5. f 6. Asia-Pacific Economic Cooperation (APEC) European Union International Trade Agreements North American Free Trade Agreement (NAFTA) O a O b O c Od Protectionism United Nations (UN) What happens when a nation's currency depreciates? Its products become cheaper to other nations. Its trade decreases. Its trade increases. Its products become more expensive to other nations. Question 3 (1 point) Column B a. A trade agreement between the United States, Mexico, and Canada established in 1994 and renegotiated as the United States-Mexico-Canada agreement. b. A political and diplomatic organization established to promote economic and social cooperation between nations. c. Multinational agreements on trade conditions. d. A political and economic union of European states. e. An economics forum consisting of 21 countries in the Asia-Pacific region. f. The concept of protecting a country's domestic industries from foreign…

Bb NJCU Blackboard Ultra X Content MindTap - Cengage Le X h Hulu | Watch XG Suppose that Italy and X b Answered: 3. The pric X + ng.cengage.com/static/nb/ui/evo/index.html?deploymentld3D5982817632378017929309483&elSBN=9780357133606&snapshotld%=2428921&id3D11... >> CENGAGE MINDTAP Q Search this course Homework (Ch 03) i When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Candonia and Lamponia. Both countries produce lemons and coffee, each initially (i.e., before specialization and trade) producing 12 million pounds of lemons and 6 million pounds of coffee, as indicated by the grey stars marked with the letter A. Candonia Lamponia A-Z 32 32 28 28 PPF 24 20 20 16 16 12 12 PPF A 4. bongo 8. 12 16 20 24 28 32 8…

Video Link: https://youtu.be/SG8DCgjkGzY The opening of the video, Global Mind: The Future of Globalization and Its Impact on Our World,  is quite dramatic. Specifically, the narrator notes: Globalization affects all people in every aspect of life. Because of innovation and communication technologies, we're all connected; giving us instant access to collective knowledge, culture, societies, partnerships and friendships. That is Globalization. The bottom line is the world is changing; trends around time, space, and place. Given this general understanding along with the other material profile in the video, please identify from the following statements those two that are true and those two that are false. (T=TRUE, F=FALSE) Statement 1: a father of his daughter, Ever since she got an iPad she wants learn all about her national culture, particularly finding out the latest news about local celebrities.   Statement 2: Technology is expanding to developing countries and will connect us all…

how does "International Flow of Funds" have to do with printing and frbracation compaines? please type your answer.

Question 5 (a) Under what condition will a downward slopıng foreign exchange supply curve produce market instability? (b) Foreign exchange markets are usually stable in the long-run. The price adjustment process in response to goods and services may, however, be inelastic in the short-run. With the aid of a graph, explain the adjustment of the trade balance to an exchange rate depreciation. Substantiate your reasoning.

Question 2 Table 1 represents the components of the UAE current account balance during 2019-2020. Table 1 Current Account Balance in Billion Dirhams 2019 2020 Exports: Goods 1152.4 1003.0 228.2 Services Total Exports Imports: Goods 331.5 856.9 774.1 Services 323.9 218.6 Total Imports Net Exports Net transfers + investment income net Investment income Net 7.6 -1.7 Net transfers Total Transfers Current account Balance Source Central Bank of UAE -173.6 -159.7 1. Complete table 1 2. Interpret your results.

Using the data calculate the balance on current account for this economy. The value of the current account is: $ Round your solution to the nearest whole number and be sure to include a negative sign if necessary. Current Account Value Balance Exports of Goods $500 Imports of Goods 1600 Balance of Trade - 1100 Exports of Services Imports of Services Balance of Services 350 -300 50 50 Income Received on 400 Investments Income Payments on -700 Investments Net Income on -300 Investments Net Transfers -100

17. Exchange rates and U.S. exports: A graphical relationship The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to see U.S. exports on the same graph as Japanese exports in a later problem.) EXCHANGE RATE (Dollars per yen) Exports from the U.S. EXPORTS (Yen) Exports from the U.S. ? Referring to the graph, why does the line showing exports from the United States slope upward? The lower the price of the yen in term of dollars, the higher the exports from the United States to Japan. The higher the price of the yen in term of dollars, the higher the exports from Japan to the United States. The higher the price of the yen in term of dollars, the lower the exports from the United States to Japan. The lower the price of the yen in term of dollars, the lower the exports from the United States to Japan. Suppose that the exchange rate goes from $10 per 1,000 yen to $8 per 1,000 yen. On the previous…

QUESTION 3 Suppose the price of platinum were to rise. Using a diagram, explain how the change in the price of this commodity would affect the rand-dollar exchange rate, ceteris paribus.

Consider this table, which shows hypothetical balance-of-payments data for the United States. Select the correct value for each of the boxes. Simplified Balance of Payments (Billions of Dollars) Account Net Balance Merchandise Services Income Unilateral Transfers Current Account Financial Account Statistical Discrepancy Trade Balance -5 -3 -2 +10 -3 0 an American business owner purchases chocolates from Belgium in order to sell them in her shops. This would be entered as a the section of the U.S. current account. The net value of the merchandise and services accounts combined gives the value of I + G + X. If you rewrite the equation as X = GDP - (C+1+G), you can see that the current_ item under within the national income accounting equation GDP = C + U.S. value of X implies that This means that the United States is producing than it is consuming, making it a Any surplus or deficit in one account must be offset by deficits or surpluses in other balance-of-payments accounts. Because the…

Topic: The Small Open Economy, International Capital Flows and the Trade Balance Question: Why could trade deficits be a problem to a macroeconomy and why could trade deficits be beneficial for the economic development of developing countries?

3)  State whether each of the following events involves a financial flow to the U.S. economy or away from the U.S. economy: a.  Export sales to Germany b.  Returns being paid on past U.S. financial investments in Brazil c.  Foreign aid from the U.S. government to Egypt d.  Imported oil from the Russian Federation e.  Japanese investors buying U.S. real estate

Has the globalisation of international trade and banking always been beneficial for the economies of countries ? Explain .Answer :