QUESTION 3 As trade distortions such as tariffs and quotas in a small country are removed, dead weight losses will decrease, hence increasing national welfare. deadweight losses will increase, hence decreasing national welfare. government tariff revenue will increase, hence increasing national welfare. government tariff revenue will decrease, hence decreasing national welfare. QUESTION 4 If the exchange rate for the US dollars and the Swiss francs (SF) is SF1.5 = $1 and then goes to SF1.52 = $1: The dollar depreciates and the franc appreciates. The dollar appreciates and the franc stays the same. The dollar appreciates and the franc depreciates. The dollar stays the same and the franc appreciates.

Explain how exchange rates may impact the performance of international equity investment.

What does it mean by Import surcharge in a balance-of-payments emergency when pertaining to regulating import competition and unfair trade in international law?

A US imposition of quotas on Milk and milk products is expected to: have no impact on US current account balance as quotas are temporary. reduce the USA's negative current account balance, if other governments do not retaliate. increase USA's current account balance, if other governments do not retaliate. increase the volume of US trade with other countries.

When the interest parity condition holds, we know that the domestic interest rate must be approximately equal to:the foreign interest rate.the expected rate of depreciation of the domestic currency.the expected rate of appreciation of the domestic currency.the foreign interest rate minus the expected rate of appreciation of the domestic currency.the foreign interest rate plus the expected rate of appreciation of the domestic currency