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Microeconomics: Ch. 2 section “Globalization and the Law of One Price”
1. Explain the production possibility curve by (a) definition (b) description and direction of the shifts (c) description of the points of efficiency and inefficiency.
2. a. What are the positive and negative effects of International Trade on the US economy.
b. “Buy American” is a protectionist trade policy. How does or how would this policy affect your place of work or an industry that you are familiar with?
Microeconomics: Ch. 9 Comparative Advantage, Exchange Rates, and Globalization
3. Our country, the USA has lots of resources that gain for it a great comparative advantage over other countries. Explain at least TWO resources that clearly identify and give that comparative advantage.
4. Explain why a strong US dollar is or is not good for the industry you work for or a firm you are familiar with. How do changes in income, productivity, interest rates and productivity from a macroeconomic level affect exchange rates?
Microeconomics: Ch 10 International Trade Policy
5.How does the trade deficit affect the US economy? Explain the positive and negative effects of the trade deficit in your industry or firm you are familiar with.
6. What is your understanding of balance of trade and balance of payment? How would you distinguish one from the other?
7. The US had entered into many trade agreements with other countries. Cite an example of one and how does this affect you and your place of work at the microeconomic level?
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