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Suppose that the firm obtaining protection in a Krugmantype framework has marginal costs. Why would Krugman's results follow if this were true?
Why might the use of a tariff to decrease aggregate unemployment in a country eventually generate an increase in aggregate unemployment in that country?
Why does persistent dumping into the domestic country necessarily mean that a foreign government is subsidizing the foreign exporting firm?
What are some products/brands that currently target this segment? Describe marketing mix for the product.
In what respects might multilateral trade negotiations be superior to bilateral trade negotiations?
Why might an economist see virtue in the concept of trade adjustment assistance (TAA)?
How can political factors explain variation in trade restrictions across U.S. industries? What would happen to food prices? To the incomes of farmers?
What could have been the motivation behind the U.S. action, and would you have supported the action?
The terms trade creation and trade diversion are often applied in the context of assessing the impact. How can these terms be useful in the GSP context?
How would you explain reservations in the United States about the implementation of NAFTA? Do you think that NAFTA is a good thing or not? Explain.
How can international trade influence economic development positively over time?
Why is export price instability judged to be a problem for the LDCs? Why might it seem more likely to occur for LDCs than for ICs?
In the context of external sector problems, what case can you build for the formation of common markets among LDCs?
What is meant by the net international investment position of the United States? What would happen to this net position if the United States experienced?
Which of the following is a difference between structured interviews and unstructured interviews.
If the financial account balance must exactly offset the current account balance, why do government accountants bother to record the financial account?
What is the impact of these two events on country A's merchandise trade balance, current account balance, and official reserve transactions balance?
What is meant by the paradox of Mercantilism? How was this reflected in Mercantilist wage and population policies?
What will be the United Kingdom consumption of wheat and clothing in the trading situation?
How would a Mercantilist view this surplus? Why might David Hume argue that the surplus will disappear on its own?
What would happen to the dollar/yen spot exchange rate and the current account deficit if there were a decrease in Japanese investment in the United States?
Suppose the peso price of a dollar was 12.2 pesos/$ in 2005 and 13.9 pesos/$ in 2008. Why was the dollar overvalued or undervalued in 2008 according to PPP?
What would you estimate the eurodollar deposit rate to be if domestic US dollar deposit rate is 6½ percent, reserve requirement on time deposits is 2 percent.
Why can a country's nominal interest rate never be negative? Why can a country's real interest rate indeed be negative?
Briefly explain the benefits that accrue to each of the contracting parties in a eurodollar interest rate swap.