Question
Exports pay for imports. Yet in 2007 the nations of the world exported about $709 billion more worth of goods and services to the United States than they imported from the United States. Resolve the apparent inconsistency of these two statements.

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Explain why you agree or disagree with the following statements: a. A country that grows faster than its major trading partners can expect the international value of its currency to depreciate. b. A nation whose interest rate is rising more rapidly

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Explain why the U.S. demand for Mexican pesos is downward-sloping and the supply of pesos to Americans is upward-sloping. Assuming a system of flexible exchange rates between Mexico and the United States, indicate whether each of the following would cause the Mexican

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Suppose that a Swiss watchmaker imports watch components from Sweden and exports watches to the United States. Also suppose the dollar depreciates, and the Swedish krona appreciates, relative to the Swiss franc. Speculate as to how each would hurt the Swiss watchmaker.
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A rise in the dollar price of yen necessarily means a fall in the yen price of dollars. Do you agree? Illustrate and elaborate: “The critical thing about exchange rates is that they provide a direct link between the prices of goods

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China had a $372 billion overall current account surplus in 2007. Assuming that China’s net debt; forgiveness was zero in 2007 (its capital account balance was zero), what can you specifically conclude about the relationship of Chinese purchases of financial and real

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Alpha’s balance-of-payments data for 2008 are shown below. All figures are in billions of dollars. What are the (a) Balance on goods, (b) Balance on goods and services, (c) Balance on current account, (d) Balance on capital and financial account? Suppose Alpha

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Indicate whether each of the following creates a demand for or a supply of European euros in foreign exchange markets: a. A U.S. airline firm purchases several Airbus planes assembled in France. b. A German automobile firm decides to build an

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Do all international financial transactions involve exchanging one currency for another? Could a nation that neither imports nor exports goods and services still engage in international financial transactions? Explain: “U.S. exports earn supplies of foreign currencies that Americans can use to finance

Question
What point is Bastiat trying to make in his imaginary petition of the candlemakers?

Subject
business-economics