Economics

If Juana contracts to buy U.S. office equipment in U.S. dollars and he

If Juana contracts to buy U.S. office equipment in U.S. dollars and her domestic currency depreciates against the U.S. dollar between the time the contract is signed and the bill is paid, she will wind up paying less for the equipment because she stayed in the spot market. Indicate whether the statement is true or […]

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Date: September 10th, 2020

Describe the policies that would be associated with Import Substitutio

Describe the policies that would be associated with Import Substitution Industrialization. What are the primary criticisms of these policies? What will be an ideal response?   ANSWER Replacing imported manufactured goods with domestically produced products is the basis of import substitution. Tariffs and other trade restrictions were used, the government created or supported new industrial […]

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Date: September 10th, 2020

The Ricardian model of comparative advantage lends support to the argu

The Ricardian model of comparative advantage lends support to the argument that A) trade tends to worsen the conditions of unskilled labor in rich countries. B) trade tends to worsen the conditions of owners of capital in rich countries. C) trade tends to worsen the conditions of workers in poor countries. D) trade tends to […]

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Date: September 10th, 2020