International Trade: Economic Analysis 4

International Trade: Economic Analysis 4

Requirements

This assignment has two parts. Please be sure you complete both parts before submitting.

Part I

• Analyze the concept of exchange rate:     
  • Explain how the dollar price of euros is determined.
  • Identify a factor that can increase the dollar price of euros.
  • Identify a factor that can decrease the dollar price of euros.
  • Explain why a rise in the dollar price of euros means a fall in the euro price of dollars.
• Explain the purchasing-power-parity theory of exchange rates, using the euro-dollar exchange rate as an example.

Part II

• Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota.     
  • What is the net outcome of either tariffs or quota for the world economy?

Organize your assignment logically with appropriate headings and subheadings.

Additional Requirements

• Include      a title page and reference page.
• Include      3-4 pages, not counting title page and reference page.
• Use      at least three scholarly or professional resources.
• Use      APA format for citations and references.
• Set      your assignment in Times New Roman, 12 pt., double spaced.

Resources

International Trade: Economic Analysis 4 Scoring Guide