Assignment:
•Paper need to be 6 pages.
• Times New Roman Font (11) Double-spaced
• Ensure paper addresses all 8 of the below questions
• Number Questions on page as they are answered.
• Use at LEAST 1 reference for each question.
1. (Paper should have at least 8 different references)
• (Wikipedia does not count)
• Show work for all calculations.
• Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.
• 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?
• 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 reference to the demand or supply curve):
• The interest rate in Japan is lowered.
• Prices are lower in U.S.
• Higher US interest rates.
• What is the effect of a higher exchange rate on exports and imports?
• Suppose real GDP was $13.1 trillion in 2013 and $13.3 in 2014, what is the growth rate? (b.) How many years would it take for GDP (gross domestic product) to double (using your answer from part (a)?
• What are the sources of human capital? Discuss some specific examples.
• What is the law of diminishing returns? Give an example of what the law of diminishing returns implies.
• What happens when the government raises taxes and uses revenue to engage in spending?