''Under a fixed rate system, a country that followed policies that would lead to a higher...
''Under a fixed rate system, a country that followed policies that would lead to a higher rate of inflation than that experienced by its trading partner would experience a balance of payments deficit as its goods became more expensive''
I don't understand because high inflation = weak local currency = can afford less imports.
Yet BOP deficit = when the country imports more than it exports.
Can you help me ?
Homework Answers
Add Answer to:
''Under a fixed rate system, a country that followed policies
that would lead to a higher...
suppose we have a country w/ fixed exchange rate regime. the country just experienced a natural...
suppose we have a country w/ fixed exchange rate regime. the country just experienced a natural disaster (SRAS curve shift inward). a) should they devaluate or revaluate their currency to resolve inflation issue? b) what would the country do with its currency?explain and show on graph (w/ exchange rate on y-axis, countries currency in x-axis)
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing...
Questions: c) An emergency tariff on a wide range of imports would be effective in addressing U.S deficits and forcing other nations to purchase more U.S. exports; d) One reason the U.S. does not export more is lagging investment in domestic industries. Why Protectionism Cannot Cure the Trade Deficit The causal link between investment flows, exchange rates, and the balance of trade explains why protectionism cannot cure a trade deficit. In his 1997 book, One World, Ready or Not, Washington...
How is it possible for a country to import more goods than it exports?
(11)How is it possible for a country to import more goods than it exports? The government can subsidize imports. The government can subsidize exports. Foreigners can lend the country money. Private domestic banks can lend the country money. (12)The nominal foreign exchange rate is the value of foreign goods in the domestic currency. the value of domestic goods in the foreign currency.the rate at which one currency is traded for another. the difference between what a good costs in the domestic...
Attempts: 1 5. Changing the trade balance Suppose a fictional country of Nevicia runs a trade...
Attempts: 1 5. Changing the trade balance Suppose a fictional country of Nevicia runs a trade deficit. Which of the following would help decrease Nevicia's trade deficit? Check all that apply. Average: 1/2 Encouraging the economies of Nevicia's trading partners to grow more quickly than the economy of Nevicia Decreasing taxation while holding government expenditure, saving, and investment constant True or False: If the government of Nevicia lowers its trade deficit by enacting tarifs, Nevicia can expect a decrease in...
Reread the country focus “Is China Manipulating Its Currently in Pursuit of a Neo-Mercantilist Policy?” Define...
Reread the country focus “Is China Manipulating Its Currently in
Pursuit of a Neo-Mercantilist Policy?”
Define Neo- Mercantilist policy in your own words. Do you think
China in pursuing a currency policy that can be characterized as
neo-mercantilist? (100words)
what should the United States, and other countries, do about
this? (100words)
Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy? China's rapid rise in economic power has been built on export-led growth. For decades, the country's exports have...
(1) If the world price is above the domestic equilibrium price, the domestic country is likely...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
International Trade Case
Countries measure the health of their economies in many ways such as unemployment rates, consumer confidence, and Gross Domestic Product (GDP). Gross Domestic Product is a measurement of the amount of goods produced by a country in one year. If that number increases, our economy is growing, whereas a decrease would indicate a shrinking economy. To calculate expenditure GDP we add up all of the groups who buy goods in the economy (GDP = C + I + G +...
QUESTION 9. In recent years, it has been suggested that both China and the US have...
QUESTION 9. In recent years, it has been suggested that both China and the US have engaged in currency manipulation or ‘competitive devaluations’. All else the same, from this we can conclude: A. Chinese goods will be less expensive in US markets in the short-run, but US goods will be more expensive in China. B. US goods will be less expensive in China in the short-run, but Chinese goods will be more expensive in the US. C. Chinese and US made goods...
We have prepared an article about the general economic situation of India. Now, as a second...
We have prepared an article about the general economic
situation of India. Now, as a second assignment, our teacher asks
for a general comment and a question that has not been asked before
and the answer to that question. It is very important not to be
short. We should comment according to the information in the photo.
We have to ask a question and answer that question again with a
comment. a very urgent job.
1-Export Performance In recent years....
11:39 O. Read Only - You can't save changes to this fi... 3. Why MSME require...
11:39 O. Read Only - You can't save changes to this fi... 3. Why MSME require innovative approach of marketing their products? SECTION.B Case Study (50 Marks) Balance of Payment (DOP) is a statement which records all the monetary transactions made between residents of a country and the rest of the world during any given period. This statement includes all the transactions made by to Individuals, corporates and the government and helps in monitoring the flow of funds to develop...
Attempts: 1 5. Changing the trade balance Suppose a fictional country of Nevicia runs a trade deficit. Which of the following would help decrease Nevicia's trade deficit? Check all that apply. Average: 1/2 Encouraging the economies of Nevicia's trading partners to grow more quickly than the economy of Nevicia Decreasing taxation while holding government expenditure, saving, and investment constant True or False: If the government of Nevicia lowers its trade deficit by enacting tarifs, Nevicia can expect a decrease in...
Reread the country focus “Is China Manipulating Its Currently in
Pursuit of a Neo-Mercantilist Policy?”
Define Neo- Mercantilist policy in your own words. Do you think
China in pursuing a currency policy that can be characterized as
neo-mercantilist? (100words)
what should the United States, and other countries, do about
this? (100words)
Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy? China's rapid rise in economic power has been built on export-led growth. For decades, the country's exports have...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
We have prepared an article about the general economic
situation of India. Now, as a second assignment, our teacher asks
for a general comment and a question that has not been asked before
and the answer to that question. It is very important not to be
short. We should comment according to the information in the photo.
We have to ask a question and answer that question again with a
comment. a very urgent job.
1-Export Performance In recent years....
11:39 O. Read Only - You can't save changes to this fi... 3. Why MSME require innovative approach of marketing their products? SECTION.B Case Study (50 Marks) Balance of Payment (DOP) is a statement which records all the monetary transactions made between residents of a country and the rest of the world during any given period. This statement includes all the transactions made by to Individuals, corporates and the government and helps in monitoring the flow of funds to develop...
Most questions answered within 3 hours.
-
Combustion of an unknown compound containing only carbon and
hydrogen produces 54.9 g of CO₂ and...
asked 1 minute ago -
A basketball player achieves a hang time, the total time of
flight, of 0.748 s when...
asked 2 minutes ago -
A processor of carrots cuts the green top off each carrot,
washes the carrots, and inserts...
asked 14 minutes ago -
Please help me find the coefficient of kinetic and static
friction of two masses (500kg and...
asked 10 minutes ago -
Stanley Department Stores reported net income of $815,000 for
the year ended December 31, 2018.
Additional...
asked 15 minutes ago -
Below are the node_struct, link, list_struct and
list as defined in class and in hw3: typedef...
asked 14 minutes ago -
BA Corp is issuing a 10-year bond with a coupon rate of 6.00
percent. The interest...
asked 22 minutes ago -
How does a cell control the cell cycle? Explain 4 different ways
that cell cycle is...
asked 27 minutes ago -
We have to write some code to simulate
rabbits population growth in Australia. We have determined...
asked 27 minutes ago -
Presidential Aviation has provided charter flights to a wide
array of customers, including business travelers worldwide....
asked 41 minutes ago -
Discuss the significance of accounting systems in generating
reliable accounting information (200 words)
asked 47 minutes ago -
McCracken Aerial,
Inc., produces and sells a unique type of TV antenna. The company
has just...
asked 1 hour ago