1. A typical Australian farmer can produce 8000 lbs of wheat or 500 lbs of potatoes per year. A typical Canadian farmer can produce 5000 lbs of wheat or 400 lbs of potatoes per year. Who has the comparative advantage in producing potatoes?
2. What do fixed and floating exchange rates have in common, and why is the difference between them so significant?
3. What is the current state of affairs of global financial markets? Please discuss refere sources in current financial media (i.e., Bloomberg, Financial Times, or The Wall Street Journal).