Problem
The change in the exchange rate affects the national balance. In other words, a country with a weak currency will experience a trade surplus because net exports tend to be positive. This is why some countries including China have been engaged in the regulation of their domestic currency in the past. Do you support the idea of regulating the domestic currency rate? Why, or why not?
Discuss the concept of purchasing power parity. How would you use purchasing power parity to predict an exchange rate of a country of your choice?
Imagine that you are the economic advisor to the president of a developing country. Reflect on what policy you would recommend increasing trade between the country you work for and a neighboring country. Explain your reasoning.
Would you support the idea of renovating current airport infrastructure throughout the United States? Why, or why not?