While the Brady Plan did not end the debt crisis, it was a significant step toward greater stability in the Latin American region. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
One of the leading alternative theories to the HO model of international trade is the Human Skills theory, which was developed by A) Donald Keesing. B) Adam Smith. C) David Ricardo. D) G. D. A. MacDougall. ANSWER A
Date: September 10th, 2020
Which of the following is not a factor which would be relevant to country risk analysis? A) political uncertainty B) external debt C) economic growth D) none of the above. ANSWER D
Date: September 10th, 2020
Assume that transportation costs are especially high for Widgets in the two-country, two-product Ricardian model, and Country A enjoys a comparative advantage in Widgets, then A) country B must also enjoy a comparative advantage in Widgets. B) country B may end up exporting Widgets. C) country A may switch to having a comparative advantage in […]
Date: September 10th, 2020
An increase in the U.S. demand for the Mexican peso A) causes an increase in the U.S. dollar price of a Mexican peso. B) causes the Mexican peso to appreciate. C) causes the U.S. dollar to depreciate. D) causes Mexican goods to be relatively more expensive. E) All of the above. ANSWER E
Date: September 10th, 2020
Which of the following would NOT be a cause for an increased American demand for the Mexican peso? A) The United States having lower interest rates than Mexico B) Increased American demand for Mexican goods C) The expectation by speculators that the value of the peso is edging up D) More economic expansion in the […]
Date: September 10th, 2020
The dollar rate of return on euro deposits is A) approximately the euro interest rate plus the rate of depreciation of the dollar against the euro. B) approximately the euro interest rate minus the rate of depreciation of the dollar against the euro. C) the euro interest rate minus the rate of inflation against the […]
Date: September 10th, 2020
Answer the following questions briefly. (a) Is it possible for each nation to have BOP surpluses? Explain. (b) What is the “statistical anomaly” that imparts a bias to trade balances? (c) Is it correct to argue that deficit countries are harmed while surplus countries benefit by international free trade? (d) How is the balance of […]
Date: September 10th, 2020
The evidence cited in the chapter using the examples of the East Asia New Industrializing Countries suggests that as international productivities converge, so do international wage levels. Why do you suppose this happened for the East Asian NICs? In light of your answer, what do you think is likely to happen to the relative wages […]
Date: September 10th, 2020
________ refers to the irregular meetings of creditor governments with debtor nations desiring rescheduling of debts. A) The Paris Club B) IMF “conditionality” C) IBF D) LIBOR ANSWER A
Date: September 10th, 2020
