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Brazil, Argentina, Paraguay, and Uruguay are members of MERCOSUR a regional. What issues should they consider before they accept or reject a common currency?
Disucss strongest argument for a floating rate is that it frees macroeconomic policy from taking care of the exchange rate. This is also the weakest argument.
In a fixed exchange rate system, how do countries address the problem of currency market pressures that threaten to lower or raise the value of their currency?
If U.S. visitors to Mexico can buy more goods in Mexico than they can in the United States. Why is the dollar undervalued or overvalued? Explain.
What is the real exchange rate? In real terms, has the dollar appreciated or depreciated against the yen?
Suppose the U.S. dollar-euro exchange rate is 1.20 dollars per euro, and the U.S. dollar-Mexican peso rate is 0.10 dollars per peso. What is the euro-peso rate?
Draw a graph of the supply of and demand for the Canadian dollar by the U.S. market. Diagram the effect of each of the following on the exchange rate.
What are the competing merits of revaluing the GDP of other countries through the market foreign exchange rate, and purchasing power parity?
Why can the substitution of American market prices for arbitrary planning prices overcome this ambiguity, if products and characteristics are correctly matched?
Without them, economists can only guess the structure of Pareto efficient supply and demand. What does this imply about the limitations of data adjustment?
Why have liberalization and globalization failed to reverse the negative effects of Continental European, Japanese, Chinese and Russian systemic inefficiencies?
What is the main virtue of each system? What is each's major demerit? Rank the desirability of the five great power systems.
Explain how does the need to put a positive face on all systems encourage an erroneous belief in market universalism? Explain.
How does the need to put a positive face on all systems encourage an erroneous belief in market universalism? Explain.
Why is workaholism a key element of three of the four successful great power systems? Does the leisure ethic pose a threat to Continental European prosperity?
Why is culture more powerful than institutions in explaining the behavior of the five great power systems?
Three of the five great power systems do not depend heavily on the rule of contract law. How have two of them succeeded despite this handicap?
How might trade hurt a country if it imports goods that are produced under conditions of external economies of scale?
What are the differences between external and internal economies of scale with respect to the size of firms, market structure, and gains from trade?
Comparing U.S. trade with Germany and Brazil, is trade with Germany more likely to be based on comparative advantage or economies of scale? Why?
What is intraindustry trade, how is it measured, and how does it differ from interindustry trade? Are the gains from trade similar?
Does anyone know of a good economic impact analysis on the Internet that shows numbers using the multiplier effect?
Why Will the anticipated reconfiguration of wealth and income correspond with universalist market theory? Could it be destabilizing?
What does contract law suggest about the importance of culture and the adverse side effects of globalization?
How does the spending by the locals affect economic activity? How does the spending from out-of-town visitors affect the economic activity?