UOP Study Guide | Final Exam Answers |

ECO 372 Week 5 Complete

DQ 1. Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates? What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?

Please use a current example of an exchange rate [Swiss Franc-Euro, US Dollar - Japanese Yen, etc] and describe how it affects the two [or more] countries involved.

DQ 2. As was seen during the financial crisis of the 1930s, and in recent history, markets are interconnected globally. Aside from financial markets, different countries have different resources. Choose a country other than your own, which has not already been selected by another student, and research the EIU country data. Based on absolute advantage and comparative advantage, explain the effect of global economic conditions on the choices available to that country. You must include the current exchange rate of the country's monetary unit.

DQ 3. Review the U.S. Trade Representatives website at http://www.ustr.gov/trade-agreements/free-trade-agreements. Select a country or trading bloc with which the United States has a current or pending free trade agreement. What are areas of comparative advantage of the United States and its trading partner? What are the benefits and disadvantages specific to this free trade agreement?

ECO 372 Week 5 Individual Assignments

Assume that you have been appointed as the Speaker of the House. You must deliver a speech about the current state of the U.S. macro economy to a number of amateur reporters who are unfamiliar with economics.

Prepare a 750- to 1,050-word speech in simple terms and concepts that focus on international trade and foreign exchange rates.

Integrate a summary of your answers to the following questions and cite external research to further justify your facts:

· What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.

· What are the effects of international trade to GDP, domestic markets and university students?

· How do government choices in regards to tariffs and quotas affect international relations and trade?

· What are foreign exchange rates? How are they determined?

· Why doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just minimize the amount of imports coming in from all other countries?

ECO 372 Week 5 Learning Team Assignments

Discuss within your Learning Team how and why the U.S.’s deficit, surplus and debt have an effect on the following:

· Tax payers

· Future Social Security and Medicare users

· Unemployed individuals

· University of Phoenix student

· The United State’s financial reputation on an international level

· A domestic automotive manufacturing (exporter)

· An Italian clothing company (importer)

· GDP

Write a 750- to 1,050-word paper summarizing the results.

To download the complete paper click ECO 372 Week 5 Complete