Why do most countries support "dollar hegemony"? 1. Most countries are used to using dollars (network effects) 2. Gains access to US financial markets 3. They trade with the US 4. All of the above
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- Lets say there is country A which is more developed like china and country B which is less developed like the Caribbean. What are THREE possible impacts of borrowing money from Country B could have on country A?Adam Smith would have been a proponent of goavernments manipulating their currency. O True O FalseMost payments in the United States for goods and services are made using A. currency. B. gold. C. checking account deposits. D. bitcoins.
- To me I’m on the fence for the dollar being strong. One of the benefits of the dollar being strong means us, US citizens spend less money on imports. Goods produced in foreign countries will be imported for cheaper if the company producing the products currency falls below the dollar. If the dollar keeps strengthening and import prices keep falling US citizens will have more money to spend. Another benefit is cheaper traveling to foreign countries. You will be able to use less US dollars to get more money and goods abroad. A negative of a strong dollar is it will decrease tourism in the US since it will cost more to travel here. Another negative is the exports will become more expensive and international businesses will be hurt if they deal in foreign currencies. Being a citizen in the US it would be great to have a strong dollar, however as a company exporting or partaking in business in a foreign country could potentially harm your business. please help reply to this postCanada the US and Mexico are all on the same continent the AMERICAS and the economies are very tied together due to the USMCA. Do you think there should be a common currency? Why or Why not?Identify whether each of the following is a debit or a credit in Mexico’s BOP and indicate where the item would be classified.( Specifically indicate the account and the item as credit or debit) a) Mexican firms export $100 million worth of goods. b) Mexican citizens purchase $30 million on travelling overseas. c) A Mexican firm purchases a shoe factory in Bolivia for $20 million. d) Mexico receives $10 million in foreign aid from the United States. e) Mexican citizens deposit $5 million in Citibank account in New York. f) Mexico imports $110 million worth of goods. g) Mexican firms borrow $45 million by issuing bonds in the United States. h) S. firms earn (and repatriate) $5 million in profits from operations in Mexico. h) The Mexican Central bank buys $15 million in U.S. Treasury bills. Suppose that these are all of the entries in Mexico’s BOP table. State if Mexico is net lender or borrower vis- a -vis the rest of the world? Calculate the value of errors and omissions.…
- Many governments such as India and South Korean impose currency restrictions to achieve several goals. Explain these goals.In recent years, China has helped make its currency ____ by ____ U.S. dollars. stronger; buying stronger; selling weaker; buying weaker; sellingwhy the other countries cannot use the same primary monetary tool as the US?
- I got confused with this one and thought the transaction would not be recorded in the balance of payment because it doesnt say that the new jersey company is owned by a foreign resident. Since both New York and New Jersey are within the same country, the transaction would not involve any international trade or financial flows that affect the balance of payments of the United States. Thats what I thought but I am not sureWhat is the international monetary system? explainHow much damage can Saudi Arabia do to the United States economy if they started selling their Oil using another type of currency rather than the US dollar?