Question
updated 1 year ago
Category:
Economics
Suppose that if Iceland and Japan were both closed economies, the domestic price of fish would be $100 per ton in Iceland and $90 per ton in Japan. If the two countries decided to open up to international trade with each other, which of the following could be the equilibrium international price of f...
Coursepivot March 11, 2023
Here is the full solution including the answer and explanation. Explanation c is correct World equilibrium occurs when the export supply curve is equal to the import demand curve. This (View full solution)
updated 1 year ago
Category:
Economics
Suppose that a country has a trade surplus of $50 billion, a balance on the capital account of $10 billion, and a balance on the current account of −$200 billion. The balance on the capital and financial account is: LO27.2 a. $10 billion. b. $50 billion. c. $200 billion. d. −$200 billion
Coursepivot March 11, 2023
Here is the full solution including the answer and explanation. Explanation c is correct The balance of payment is in equilibrium if the summation of the current account and financial (View full solution)
187484
Do all international financial transactions necessarily involve exchanging one nation’s distinct
updated 1 year ago
Category:
Economics
Do all international financial transactions necessarily involve exchanging one nation’s distinct currency for another? Explain. Could a nation that neither imports goods and services nor exports goods and services still engage in international financial transactions? LO27.1
Coursepivot March 11, 2023
Explanation International transactions involve the sale and purchase of goods and services across nations. When people in one country buy goods from some other foreign country, they need to get (View full solution)
updated 1 year ago
Category:
Economics
Suppose that a country follows a managed-float policy but that its exchange rate is currently floating freely. In addition, suppose that it has a massive current account deficit. Other things equal, are its official reserves increasing, decreasing, or staying the same? If it decides to engage in a c...
Coursepivot March 11, 2023
Explanation Under a floating policy, as there is no requirement to buy or sell the currency to change the exchange rate, the official reserves would not change. In order to (View full solution)
187502
Compare and contrast the Bretton Woods system of exchange rates with that of the gold standard.
updated 1 year ago
Category:
Economics
Compare and contrast the Bretton Woods system of exchange rates with that of the gold standard. What caused the collapse of the gold standard? What caused the demise of the Bretton Woods system? LO27.7
Coursepivot March 11, 2023
Explanation The gold standard was active between the years 1979 and 1934. The exchange rate is fixed between the currency of the nation and gold. The disparity of the balance (View full solution)