Is country-s foreign exchange overvalued or undervalued


Write 400-600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:

Choose a developing country, and discuss its economic growth in the last 2-3 years. Include the following information:

  • Identify its growth in output per capita and in population growth.
  • Is it an open or closed economy?
  • Describe the quality and quantity of its labor force and other inputs of production.
  • Identify its comparative advantage and whether it is involved in trade.
  • Identify the country's type of economy-how their economy is a market, command, or mixed economy.
  • Is this country in good or bad shape regarding the balance of payments?
  • Is the country's foreign exchange overvalued or undervalued? Has the central bank intervened in the foreign exchange market on behalf of the country's currency valuation?
  • Has it benefitted from any trade agreements? If so, how? If not, should it?

Using the information you gathered, discuss whether you believe the country is on a good course of economic growth and whether the macroeconomic policies are helping achieve this growth.

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Microeconomics: Is country-s foreign exchange overvalued or undervalued
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