Takehome_Exam.doc

Take Home Exam Write the answers in Microsoft Word. The answers are due any time before or on the day of the final exam of this class as scheduled by the university. Base your answers on materials you can find in economics books, economics journals and the lecture notes. I am not asking for personal opinions. What are the gains from international trade? Within a country who gains from imports? who loses from imports? who gains from exports? who loses from exports? Generally what group of people would be against free trade in a nation? Consumers of imported goods? Exporters? Import-competing businesses? Workers in import-competing businesses? Cheap foreign labor argument: What is the Cheap foreign labor argument? What is the relationship between productivity and wage rates? Low-wage nations tend to have a competitive advantage in what kind of goods? What do we mean by trade based on: Factor endowments Economies of scale What is the difference between intra-industry and inter-industry trade? Generally, trade in primary goods involves intra- or inter-industry trade? Generally, trade in manufactured goods involves intra- or inter-industry trade? In international economics what is the difference between a small country and a large country. Small country: Should a small country trade with a large country? Why or why not ? Can a small country influence prices in a large country? Large country: Can a large country influence prices in a small country? What do we mean by dynamic comparative advantage? Can a country use industrial policy to achieve dynamic comparative advantage? What measures can be used by governments to achieve dynamic comparative advantage? What do we mean by dynamic economies of scale? Foreign Direct Investment (FDI) in the U.S.: What is the difference between foreign direct investment inflow and outflow? What factors influence FDI What are the potential advantages of an FDI to a host country? What are the potential advantages of an FDI to the source country? What are the potential costs of an FDI to a host country? What are the potential costs of an FDI to the source country? The Exchange rate What are the factors that affect it? How does a depreciating currency affect a country's exports, imports, prices, and economic activity as a whole? How does an appreciating currency affect a country's exports, imports, prices, and economic activity as a whole? Organizations: WTO (World Trade Organization) and GATT: What is the difference between the WTO and GATT? When was each established? What are their major objectives? What are the complaints against the TRIPS and TRIMS agreements by some. International Monetary Fund (IMF) and the World Bank? When were they established? What do they do? Are there complaints against them? If so what? The European Union: Which countries are members of the European Union? NFTA: Which countries are members of NFTA? China and the United States What is China?s economic strength? What is the United States? economic strength? What are the top ten goods and services that the U.S. exports? top ten goods and services that China exports? top ten goods and services that the U.S. imports? top ten goods and services that the China imports? What is meant by the new knowledge based global economy? Relative to other countries how is the U.S. doing in the new knowledge based global economy? get you answer from the NSF website: http://www.nsf.gov/statistics/seind06/c6/c6h.htm PAGE PAGE 1