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Discuss how quantitative easing and other actions by central banks worldwide effect currency trade.
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- You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Analyze the entry country (Australia) based on the following; What are the major exports, dollar value, and trends? What are the major imports, dollar value, and trends? Does the entry country have a surplus or deficit for trade? What are the exchange rates? Are there any restrictions on currency trade? You should also consider sweat shops, skilled labor, employee unrest, political and social activists and labor unions in your analysis.Has the globalisation of international trade and banking always been beneficial for the economies of countries ? Explain .Answer :What does it mean by the monetary approach to currency depreciation when pertaining to international economics?
- Explain why many industrialized countries do not often intervene in the foreign exchange marketHow will currency appreciation make imports cheaper and exports more expensive, causing the trade deficit of America to expand?Construct a model that shows how – in the longer run – money supply and demand as well as the dollar return on foreign assets determine the exchange rate.
- Suppose country A’s goods become more popular with foreign consumers, and country B’s less so. How would this affect each country, assuming that they share a common currency? What are the pros or cons for each country?Suppose that all economies in the world agreed to use a single currency that would be managed by an independent organization. What would the advantages and disadvantages of this be?Which of the following statements is FALSE? Group of answer choices a) The Bretton Woods system failed because the supply of the U.S. dollar as not sufficient to support the growth in global trade and the related financial transactions. b) The Bretton Woods system created the World Bank to enforce the agreement and serve the function of the global central bank from which member countries can borrow. c) Under the Bretton Woods system, the U.S. dollar was the only currency that was full convertible to gold because after WWII, the United States held three-fourths of the world's supply of gold. No other countries had enough gold to back its currency. d) Under the Bretton Woods system, each country had to have a monetary policy that kept the exchange rate of its currency within a fixed value plus or minus one percent-in terms of gold. e) The Bretton Woods agreement of 1944 replaced the gold standard with the U.S. dollar as the global currency.
- How would I find the actual exchange rate to answer the bottom part of the data shown.If the exchange was 100 Japanese Yen = 1 US dollar last month and today it is 90 Japanese = 1 US dollar, then a) None of the choices is correct b) US goods just became more expensive for the Japanese c) All trade between the U.S. and Japan will stop until the exchange rate goes back to what it was last month d) US goods just became cheaper for the Japanese e) Japanese goods just became cheaper for the USHow do you think a fluctuation in foreign exchange rates affect trade?