Terminology
a government imposed limit on number of specific goods that can be bought
Import Quota
Draw a Free Trade Diagram Import. Label the new consumer surplus, producer surplus, all lines, all axis and parts of graphs, welfare gain, new imports quantity
Quantity QS-QD
for each of the following questions say whether demand or supply is impacted and whether it is an increase or decrease (i.e Demand Increase)
Low inflation in Canada. What is the impact on the Canadian dollar relative to the US Dollar
Canadian dollar: Increase in Demand
1 euro=83 rupees
5 Euros=_________Rupees
415
For each question say whether it is part of Current Account, Capital Account Financial Account AND note which country receives money (credit) vs which loses money (debit)
Money send by Mexican workers during Bracero Program working in CA back to Mexico
Current Account
US Debit
Mexico Credit
a sum of money granted by the government to an industry
Subsidy
Draw a tariff graph. Fully label all axis, all lines, DW loss, gov revenue, new CS Surplus, New Producer Surplus, new quantity of imports
QS Imports
Q3-Q4
for each of the following questions say whether demand or supply is impacted and whether it is an increase or decrease (i.e Demand Increase)
Currency speculators sells the Bolivar believing it will decrease. What is the impact on the US dollar relative to the Bolivar
US Dollar Decrease in Supply
1 Euro=83 Rupee
____Euros=200 Rupees
2.41 Euros
For each question say whether it is part of Current Account, Capital Account Financial Account AND note which country receives money (credit) vs which loses money (debit)
Ikea (Sweden) factory created in United States
Financial Account
US Credit
Sweden Debit
an agreement between countries to reduce trade barriers and promote trade (multiple types)
PTA
Draw a import quota graph. Fully label all axis, all lines, DW loss, CS Surplus, Producer Surplus, new quantity of imports
See Board
Q1-Q3
for each of the following questions say whether demand or supply is impacted and whether it is an increase or decrease (i.e Demand Increase)
Recession in the United States. Show how that will affect the Rupee relative to the Dollar
Rupee: Decrease in Demand
1 Euro=83 Rupees
1753 Rupees=_____Euros
21.12 Euros
For each question say whether it is part of Current Account, Capital Account Financial Account AND note which country receives money (credit) vs which loses money (debit)
Lease payment of water reserve by Iraqi business to Canadian government
Capital Account
Iraq Debit
Canada Credit
an agreement between countries to remove trade barriers and allow for the free movement of goods, services, and people and common trade policy
Common Market
Draw a subsidy graph. Fully label all axis, all lines, DW loss, new quantity of imports
See board
Q3-Q2 new import
for each of the following questions say whether demand or supply is impacted and whether it is an increase or decrease (i.e Demand Increase)
Political turmoil in Canada, a lush tourist location, known for its maple and trees, as Donald Trump invades to make it the 51st State. Show how that will impact the Euro relative to the Canadian Dollar
Euro=Decrease in Supply
For Monetary Union Say which of the following apply to it (yes or no for each)
Free Trade?
Common Tariff?
Free movement of FOP?
Single Currency?
Free Trade?
YES
Common Tariff?
YES
Free movement of FOP?
YES
Single Currency?
YES
For each question say whether it is part of Current Account, Capital Account Financial Account AND note which country receives money (credit) vs which loses money (debit)
BNP Bank (France) pays 8 million in interest to investors from China
Current Account
France Debit
China Credit
a system where a government or central bank periodically intervenes to influence the value of a currency but it is still partially freely moving
Managed Exchanged Rate
Draw a fixed Exchange rate for USD/RMN showing self correction
See Board
for each of the following questions say whether demand or supply is impacted and whether it is an increase or decrease (i.e Demand Increase) THEN explain how AD impacted
There is anticipated high interest rates in the United State Show how that will impact the Dollar relative to the Euro then explain how that will affect AD for US?
US Dollar: Increase in Demand
AD Decreases
For Common Market Say which of the following apply to it (yes or no for each)
Free Trade?
Common Tariff?
Free movement of FOP?
Single Currency?
Free Trade?
YES
Common Tariff?
YES
Free movement of FOP?
YES
Single Currency?
NO
For each question say whether it is part of Current Account, Capital Account Financial Account AND note which country receives money (credit) vs which loses money (debit)
Ryan Lininger buys 3 million in stocks in Hong Kong Stock Market
Financial Account
US--Debit
China/Hong Kong--Credit