Question

1. Do you believe that business cycles are related to political elections? Explain your thoughts why or why not.

2. What do choose from the three approaches described in this chapter, as the best choice in dealing with the current economic challenges.

3. Do you believe that developed, industrial countries have an obligation to provide foreign aid to developing countries? Explain your answer.

4. There were several major international financial crises in the 1990s as well as in 2007-2008. What role did globalization play in these crises?

5. The United States restricts trade with Cuba, should this continue, even with many companies eager to engage in trade?

6.

Should the U.S. government do more to protect domestic jobs? Explain your answer.

Answer 1

Solution 1

Business cycles are definitely related to political ideologies and governing party and its policies implementation, foreign economy relations and its internal stability and collaborative efforts with central bank to keep check on monetary and fiscal policy

Solution 2

Best choice is to adopt combination of fiscal and monetary policy stance for economic challenge and let automatic stabilizer first show its own impact on macro economic variables.

Solution 3

Developed foreign countries not obliged to pay aid to developing countries however if they have great economic relations or trade relations due to comparative advantage it becomes good oppirtunuty to aid them or bailout.

Solution 4

Globalization played huge role specif9in Asian financial crisis and great depression. Due to excessive fund transfers, credit supply and booming trade relations the supply if money kept increasing causing bubble to burst and rendering banks to get default anf bankrupt.

Solution 5

US restrictions on Cuba since 1961 with financial sanctions and embargoes have been buoyant because of violating norms of human rights by cubans. However this Cokd war has finally cooled off since 2015. USmust discontinue such embargoes because they can greatly benefit fron this nation due to tourism and various Other benefits which can increase GDP for UsA.

Solution 6

US government must do more than just protectionism policies. Limiting sanctions of Greencard and H1B holders for immigrants, tighter norms for job opportunities for migrmats, and better quotas and preferences for local talent needs to be implemented.