ECON 6367 STUDY QUESTION: Please see attached and note 1 question requires a written graph.

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ECON 6367 STUDY QUESTION:

Please see attached and note 1 question requires a written graph.

ECON 6367 STUDY QUESTION: Please see attached and note 1 question requires a written graph.
Chapter 8 Question 1: How can trade liberalization exist on a nondiscriminatory basis versus a discriminatory basis? What are some actual examples of each? Question 6: Table 8.6 depicts the supply and demand schedules of gloves for Portugal, a small nation that is unable to affect the world price. On graph paper, draw the supply and demand schedules of gloves for Portugal. Assume the Germany and France can supply gloves to Portugal at a price of $2 and $3, respectively. With free trade, which nation exports gloves to Portugal? How many gloves does Portugal produce, consume, and import? Suppose Portugal levies a 100 percent nondiscriminatory tariff on its glove imports. Which nation exports gloves to Portugal? How many gloves will Portugal produce, consume, and import? Suppose Portugal forms a customs union with France. Determine the trade creation effect and the trade diversion effect of the customs union. What is the customs union’s overall effect on the welfare of Portugal? Suppose instead that Portugal forms a customs union with Germany. Is this a trade diverting or trade creating customs union? By how many does the customs union increase or decrease the welfare of Portugal? Chapter 9 Question 9: What are some examples of welfare gains and welfare losses that can result from the formation of international joint ventures among competing businesses? Question 10: What effects does labor migration have on the country of immigration? The country of emigration? The world as a whole? Chapter 10 Question 3: Why does the balance-of-payments statement “balance”? Question 8: What does the balance of international indebtedness measure? How does this statement differ from the balance-of-payments? Chapter 11 Question 8: Distinguish between stabilizing speculation and destabilizing speculation. Question 9: If the exchange rate changes from $1.70 = (₤1) to $1.68 = ₤1, what does this mean for the dollar? For the pound? What if the exchange rate changes from $1.70 = (₤1) to $1.73= ₤1? Chapter 12 Question 2: Why are international investors especially concerned about the real interest rate as opposed to the nominal rate? Question 6: What factors underlie changes in a currency’s value in the short run? Chapter 15 Question 1: Distinguish among external balance, internal balance, and overall balance. Question 5: Under a system of fixed exchange rates and high capital mobility, is monetary policy or fiscal policy better suited for promoting internal balance? Why? Question 7: What are some obstacles to successful international economic policy coordination?

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