ECO 372 - Week 4 DQ’s
· Due: Thursday, January 5th.
· Min. 100 words per question
1. How do changes in interest rates, inflation, productivity, and income affect exchange rates? Is a strong U.S. dollar effective for worldwide economies? Why or why not?
2. Who benefits from a tariff or quota? Who loses? What are the positives and negatives of protectionist trade policies on the federal government’s part? Which policy is best right now?
3. What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work?
4. What is the importance of trade agreements? How is international trade related to the U.S. standard of living as opposed to a small industrial nation or a developing nation? How might trade agreements have a positive or negative effect on your industry?