1. How does a "fixed" exchange rate-say five U.S. dollars for one British pound-remove the risk in international trading that exists when the exchange rate fluctuates according to the supply and demand for dollars and pounds?
2. Could you notice the presence of growing globalization, even if you had never heard the word, from what you see in ads or in shops? Can you mention a few exam- ples, say in automobiles, food, or clothing?
3. Can you explain why a concerted effort on the part of people who buy or sell foreign exchange can threaten the solidity of a whole nation's economy? If you were a Mexican businessperson who needed to import zip- pers from the United States to manufacture sportswear, which you then exported to Europe, can you explain why a collapsing peso would make business very diffi- cult, or even impossible?
4. What do you see as the obstacle in reestablishing the kind of stable exchange rates that used to prevail under the pre-World War I Gold Standard, when all major countries declared the value of their currencies in terms of gold? Can you explain why England, which was then the hegemon of world trade, lost that position after World War I?
1. What were the immediate causes of the "Great Recession"? What were the longer-term trends that hinted that a dangerous economic imbalance might be building?
2. How does the Great Recession compare to the Great Depression in terms of the causes, severity, and scope of the economic downturn?
3. In what ways has the Great Recession been a global phenomenon?
PLEASE use this website to answer the questions
https://marcell.memoryoftheworld.org/Robert%20Louis%20Heilbroner/The%20Making%20of%20Economic%20Society%20(918)/The%20Making%20of%20Economic%20Society%20-%20Robert%20Louis%20Heilbroner.pdf