Is it fair for China to fix its currency by undervaluing it on the market? How does keeping its currency undervalued give it a favorable position in international trade? What about from the viewpoints of international companies and consumers?

Q: Briefly describe how letters of credit facilitate international trade transactions between exporters…

A: Letter of Credit(LC)is an instrument for assured payments. It is an undertaking of the issuing bank…

Q: Explain 3 factors why countries would want to join a Single Currency area.

A: Under the single currency area, different economies used a single currency in order to get benefits…

Q: Explain why, despite comparative cost disadvantages, countries might tend to protectionism for…

A: Protectionism : Protectionism refers to the deliberate practice of limiting imports or promoting…

Q: Which is better policy? Trade liberalization or trade protectionism? why?

A: Trade refers to the activity where countries exchange goods and services with each other in the form…

Q: How would you define and explain the balance of payments, and how this concept affects the ability…

A: Global trade: It means the import and export of goods and services across international boundaries.

Q: How will change in interest rate affect trade financial and capital account

A: The financial account provides information about the increase or decrease of international assets.…

Q: What must be done to tilt the balance of trade in favor of south Africa

A: The balance of trade, also called the trade balance, is the difference between the value of a…

Q: What downsides might Brazil experience by implementingquotas, tariffs, and measures to devalue its…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Evaluate how an appreciating US Dollar could hurt an economy

A: Appreciation is the rise in the value of a country's currency with respect to other country.…

Q: Is international trade good for the US economy and why? Is it good for the consumer? Is it good for…

A: International trade means exchangimg goods and services among nations in order to economic growth…

Q: ite and explain the main uses of foreign exchange markets for international business.

A: The marketplace where participants can buy, sell, trade, and speculate on currencies is known as the…

Q: What are Special Economic Zones. What value do they offer companies in entering an international…

A: A special economic zone is a region in a nation that is put through different economic regulation…

Q: In your opinion, how can we attract new foreign investors to our country in order to develop our…

A: Foreign investment refers to a situation when the individual from a foreign country invest in…

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

Q: e small happy Kingdom of Pollyanna does not trade with the rest of the world, but uses U.S dollars…

A: Before the trade, the price of tofu in the kingdom is $1 per pound and the equilibrium quantity of…

Q: Clarify why companies may need to use modes other than exporting to operate effectively in…

A: The modes other than exporting are: 1. Franchising and licensing 2. Strategic alliances 3.…

Q: , if a fo

A: Tariffs are taxes being imposed by the government on imports. They would raise the price for…

Q: what specific kinds of domestic institutions leads to protectionism and liberalization?

A: Trade liberalization  has always bene one of the controversial topics and it has been opposite to…

Q: Explain the difference between currency devaluation and currency depreciation. What's a major…

A: Currency is the money represented as a medium of exchange in the economy to buy and sell goods and…

Q: NAFTA has improved Mexico-U.S. trade and investment, yet, bilateral trade between the United States…

A: Trade means goods and services are exported to other countries and imported from outside the…

Q: How to calculate Balance of trade and the current account ?

A: Fares are products or administrations made locally and offered to an outsider. That incorporates…

Q: How does a depreciation or devaluation of a nation’s currency operate to eliminate or reduce a…

A: Introduction  A country devalues ​​its currency to combat a trade imbalance, which means that an…

Q: What are the impacts of trade barriers on currency values? Do trade barriers impact currency…

A: Governments erect hurdles to free commerce between national economies, which are referred to as…

Q: how can tariffs encourage domestic production growth?

A: Trade restrictions are any of the many policy tools that the government uses to limit the volume of…

Q: What effect is creation of a single market and a single currency within the EU likely to have on…

A: To establish a single market inside the European Union, obstacles to the unrestricted movement of…

Q: Despite having a customs union, countries in the EU implemented a series of quality, health and…

A: European union implemented a series of quality, health and safety regulation that could affected…

Q: Cite and explain the main uses of foreign exchange markets for international business.

A: The foreign exchange market is the market for exchange of currencies in the economies…

Q: Describe the U.S  role in the world economy.

A: The objective of this question is to understand the role of the United States in the global economy.…

Q: What are automatic exchange's main benefits and challenges for the Caribbean?

A: The automatic change of information (AEOI) refers back to the systematic alternate of financial…

Q: Maximizing currency conversion is one of the keys to success for international exposure. Which are…

A: Macroeconomics is a sub-part of economics that is used to understand, the policies and fiscal…

Q: Why do businesses pursue international expansion beyond their domestic markets?

A: Companies go international because they want to expand their operations beyond domestic markets such…

Q: What are the major components of trade balance

A: Trade balance, or balance of trade, is the term used to calculate the difference between a country's…

Q: China runs a huge balance of payments surplus with the U.S. Which country benefits in terms of…

A: Here, it is given that China has balance of payments surplus, which implies that it has more inflow…

Q: what are some factors affecting the quantity of US dollars supplied in the foreign exchange market?

A: The foreign exchange market helps in the determination of the exchange rate for various currencies.…

Q: Explain why a currency depreciation leads to an improvement in a country’s trade balance

A: Answer to the question is as follows :