Essay about economic internation

Submitted By gy5234229
Words: 3410
Pages: 14
Open Document
ECO 320 International Economic
1. c
2. d
3. c
4. b
5. d
6. c
7. c
8. c
9. d
10. d
11. c
12. c
13. c
14. d
15. b
16. c
17. a
18. a
19. c
20. c
21. a
22. d
23. d
24. a
25. b
26. d
27. c
28. b
29. d
30. a

PART B:
Qustion1:

1.The point E is the Equilibrium point, in this point it means that demand and supply can get the maximum quality and price, so the price will be $40, and the quantities of the demand is 200, the producer of quantities is 200.

2.i: under free trade
Under free trade the price of bananas is P=$10 per box. And the nation consumes 500 boxes. The quantity of bananas produced is 50 boxes. Thus, the nation needs to import 450 boxes (BC).
With the tariff
Because of impose of the 100%, so the price will be 10*(1+100%) =$20 so the demand of the band is 400 boxes, and producer is 100 boxes, so the country should import 300 boxes.
3. The consumption effect of the tariff: domestic consumption decreases 500-400=100 boxes (BH);
The production effect of the tariff: domestic production increases 100-50=50 boxes (CJ);
The trade effect of the tariff: decline in imports 450-300=150 boxes (CM+BN);
The revenue effect is 300boxes*10= $3000 (JMNH).
4. before import tariff: the consumer surpluses is equal to the area ABR=$ 500*50*0.5= $12500; After import tariff: the consumer surpluses is equal to the area GHR=$ 400*40*0.5= $8000
The dollar values of change in the consumer surpluses is equal to the area ABR -GHR) = $12500-8000=$4500 Thus, the consumer surpluses decreases AGHN=$4500.

Before import tariff: the producer surpluses is equal to the area OCA=$ 10*50*0.5= $250;
After import tariff: the producer surpluses are equal to the area
OJG=$ 20*100*0.5= $1000
The dollar values of change in the producer surpluses is equal to the area ACJG (OJG-OAC) = $1000-250=$750 Thus, the producer surpluses increases $750.

5. The deadweight loss of the tariff is equals to the shaded areas CMG+HNB=$10*50*0.5+$ 10*100*0.5= $250+500=$750

Question2:
1.Because of now spot rate=$2/1 and after three month the forward rate =$1.96/1 it means in the three month that the dollars will appreciation (2-1.96)/2=2% or pound will deprecation 2% so in the three month the man should pay more10000*2%=200pond
Options:
a. Buy at the current spot rate and deposit the receipts in an interest earning account until the funds are needed.
b. Buy a forward contract i:Typically entails paying a forward premium, increasing the cost of the transaction.
c. Buy a call option i:If not exercised, the premium is lost.
2. Because of now spot rate=$2/1 and after three month the forward rate =$2.05/1 it means in the three month that the three month that the dollars will deprecation (2.05-2)/2=2.5% or pound will appreciation 2.5%
So the guy will earn 10,000*25%=250pound.
So the man should the purchase of a foreign currency when the domestic price rises, in the expectation that it will rise even higher.

When the price $1.95/1pound instead of $2.05/1
The dollars will appreciation (2-1.95)/2=25% or pound will depreciation 25%
So the guy will lose 10,000*25%=250pound
So the man should sale of a foreign currency when the domestic price falls or is low, in the expectation that it will fall even lower

PART C: ESSAY QUSTION
Introduction
In recent years, the developing courtiers economic have a big improvement, and more and more developed country prefer to invest in developing counties rather than the own country. During this time the developing countries with a high economic growth rate. Especial for the BRICS (which china, India, Russia and Brazil), more and more foreign direct invest support the developing countries’ economic growth and solve the many native employee problems. Some economist even said that in the future developing country would be engine of world’s economy (Bamberry, 2011). Alone with the rapid development, there also exist some people began
Show More

Related Documents: Essay about economic internation

Essay on An Overview of the Canadian Financial-Services Sector: Banking Industry

Team 4 : Chi Consulting Economic Context: The presentation will be to the Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI): Julie Dickson, Superintendent. A) Economic trends and conditions - Tuan 1. Labour Force -Employment decreased by 29,000 in April, and the unemployment rate was unchanged at 6.9% as the number of people participating in the labour market edged down. There has been little overall employment growth in Canada since August 2013.…

Words 1024 - Pages 5

Essay on English: World Trade Organization and Free Trade Agreement

consequences or punishments - contracting parties are not obligated to observe rules that are inconsistent with their domestic laws Goals: - to help its members negotiate trade deals, resolve problems and collect data about world trade - encourage economic growth - international trade North American Free Trade Agreement (NAFTA) Countries involved: Canada, USA and Mexico Goals: - to eliminate barriers of trade and investment between Canada, USA and Mexico Trade items: 1) Apples 2)…

Words 1097 - Pages 5

International Political Theory Today

Student Number:__084243812______________________________ Year of Study: 1st 2n Final Exchange Module Number: IP30120 Module Title: International Political Theory Today Course Work Title: What is the significance of Marxism for our thinking about international politics today? Seminar Tutor: _Alex Hoseaso___No. of Words: _3020__ Registered dyslexic? Yes / No This piece of assessed work is the result of my own work, except where otherwise stated. All sources are acknowledged…

Words 3447 - Pages 14

Case Analysis: Japan's Economic Malaise Essay

two Case Analysis: Japan's Economic Malaise Review the Japan's Economic Malaise Case Study at the end of Chapter 3 of the Hill text. Answer the five Case Discussion questions in a Word document and submit your responses to the Week 2 Course Dropbox. You will find at the end of chapter 3 starting on p.95 in our electronic e-Book in the classroom. Japan’s Economic Malaise In 1989 Japan was widely viewed as an economic super-power. After three decades of robust economic growth it had risen to become…

Words 1750 - Pages 7

History: South Korea and Global Market Essay

Nguyen Nguyen Honor World History Period: 4 South Korea Mr. Peters South Korea locates in East Asia, and it has four different seasons. During winter, it is very cold, dry, and the season lasts long compare to summer which lasts shorter with humid and hot condition. There are the pleasant spring and fall. Nevertheless, they also don’t last very long. The dominant religions in South Korea are Buddhism and Christianity which consists of Protestants and Catholics. Due to the United Nation…

Words 1865 - Pages 8

Rise and Fall of Rome Essays

Plebians(Commoners) that resulted in a wide gap between the bourgeois leading to a change of policies allowing more rights to the poor. The same problems can be seen In the USA today; the widening gap of the rich and the poor has put the weight of the whole economic system on the shoulders of the middle class, causing their gradual demise. The middle class is currently…

Words 2150 - Pages 9

Bank of America Essay

Internation Business Case Study Bank of Amerian and The Chinese Credit Card Market 1. How important is China to Bank of America? Did BOA do the right thing by taking a minority position in CCB? We considered that Bank of America’s taking minority position in CCB (9 percent, as stated from the case) is an adequate decision. Looking at the situation from the perspective of a firm in search for successful overseas expansion, we considered that CCB - one of the largest commercial banks in China…

Words 2151 - Pages 9

The Impact Of Access To Safe Drinking Water On GDP Growth Rates In Latin America

drinking water has on a population can be detrimental to the economic growth of a country or region. Nearly 3.4 million people die every year due to water-related diseases, according to the UN Development Programme (Watkins, 2006). This is roughly equivalent to the entire city of Los Angeles. Due to sheer loss of life alone, it can be seen that health concerns caused by water-related issues have drastic effects on populations. The economic impacts of a lack of access to safe drinking water will be…

Words 3217 - Pages 13

Universal Health Care Sweden Polisci 183 Essay

Case Study Paper: Sweden Universal Healthcare Vs. United States Private Healthcare Ramandeep S. Badyal PLSI 183 Comparative Administartion Professor Kenneth N. Hansen March 25, 2015 The United States healthcare system is very different from all the other nations. It spends a lot of money on the healthcare and has been unsuccessful in controlling its high health care costs. Not every citizen in the United States have access to health care. Many of the other nations spend very less in…

Words 2703 - Pages 11

Essay about Mapping The Arts Marketing Literature

with the “fresh approach” to arts marketing advocated by O’Reilly and Kerrigan (2010, p. 3) and with Rentschler and Shilbury’s view (2008) of arts management as a field which “does not fit neatly within management, marketing, sociology, aesthetics, economics or law, but is a multidisciplinary profession drawing on these and other fields as its platform for scholarship”. Within the international academy, there are many scholars outside marketing who have a stake in the theorisation of art and its relationship…

Words 5538 - Pages 23