Assignment:
International Trade Policies
Submit a 5-6-page paper that addresses the following questions. Be sure to use references throughout the paper that support your answers. Show work for all your calculations.
1. Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.
2. Because wage rates are so low in Africa, why don't Microsoft, Cisco and other major corporations close down their American operations and move to Africa?
3. Consider the foreign exchange market for Japanese Yen and Dollars. Assume a market where the U.S. dollars are on the x axis as shown in the background material. Indicate whether the dollar would APPRECIATE or DEPRECIATE if the following events occur (be sure to explain your answer such as including references to the demand or supply curve):
a. The interest rate in Japan is lowered.
b. Prices are lower in the U.S.
c. Higher U.S. interest rates.
4. What is the effect of a higher exchange rate on exports and imports?
Note: references list from background information
- https://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12053
- https://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12090
Assignment expectations:
Use concepts from the modular background readings as well as any good-quality resources you can find. Be sure to cite all resources within the text and provide a reference list at the end of the paper with website information if applicable.
Length: 5-6 pages, double spaced, typed in Times New Roman Font 12
The following items will be assessed in particular:
- Your ability to understand international trade policy.
- Some in-text references to the assignment's background material in APA Format.
- The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.