Countries will export a good when they have a ______________ advantage.
âImporting a good is bad for everyone in the importing country." Is this statement true or false? Explain.
Name one group who is helped by a tariff imposed on an imported good. Name one group who is harmed.
Company Y cannot produce its product as cheaply as foreign firms.It has higher costs. As a result, it cannot compete with foreign imports. According to the infant industry argument, why might it be beneficial to impose tariff on this product and protect Company Y?
State one benefit of international trade NOT related to price.
A country exports $5000 and imports $4200. Calculate net exports. Is the country running a trade surplus or a trade deficit?
If a country runs a trade deficit, will the level of investment spending be greater than, less than, or equal to the level of domestic saving?
Currently, the nominal exchange rate is approximately 0.77 British pounds per dollar (or: about 1.30 dollars per pound) If the dollar appreciates against the pound, will a dollar buy more than or less than 0.77 pounds? Will a pound buy more or less than $1.30?
If the nominal exchange rate increases, what will happen to the real exchange rate, ceteris paribus? Will it increase, decrease, or remain the same?
If a currency appreciates, what do we expect to happen to net exports, ceteris paribus? Explain.
Countries will export a good when they have a ______________ advantage.
âImporting a good is bad for everyone in the importing country." Is this statement true or false? Explain.
Name one group who is helped by a tariff imposed on an imported good. Name one group who is harmed.
Company Y cannot produce its product as cheaply as foreign firms.It has higher costs. As a result, it cannot compete with foreign imports. According to the infant industry argument, why might it be beneficial to impose tariff on this product and protect Company Y?
State one benefit of international trade NOT related to price.
A country exports $5000 and imports $4200. Calculate net exports. Is the country running a trade surplus or a trade deficit?
If a country runs a trade deficit, will the level of investment spending be greater than, less than, or equal to the level of domestic saving?
Currently, the nominal exchange rate is approximately 0.77 British pounds per dollar (or: about 1.30 dollars per pound) If the dollar appreciates against the pound, will a dollar buy more than or less than 0.77 pounds? Will a pound buy more or less than $1.30?
If the nominal exchange rate increases, what will happen to the real exchange rate, ceteris paribus? Will it increase, decrease, or remain the same?
If a currency appreciates, what do we expect to happen to net exports, ceteris paribus? Explain.