Question 1: Econoland runs a current account deficit of $100 billion in a given year. Explain what must have happened to the financial account and Econoland’s international investment position. Specifically explain how the financial account and Econoland’s international investment position are related.
Question 2: Whys does most of the worlds’ international trade take place between similar developed countries?
Question 3: What are some examples of creative destruction? Describe and discuss their benefits or costs to human welfare?