FALLING DOLLAR

As we know, the value of the dollar depends on what determines the supply curve and demand curve on the foreign exchange markets, which obviously is linked to supply and demand for the underlying transactions (be sure not to get confused by the chicken and egg problem). By clealy identifying these transactions, who are the winne ...continues

EXPORTS & IMPORTS

What were the top five exports and imports from Japan? What is the calculation of last moth's US trade surplus, deficit, or balance with Japan? What five products were responsible for the development of this situation? I tried to find this info and was unsuccessful. Please let me know where and how you find it. Thank you.

NAFTA & Comparative Advantage

Can we conclude that the effects of NAFTA are good examples of comparative advantage? Was the enactment of NAFTA a good or bad decision?

NAFTA & Comparative Advantage

I do not understand. If the United States lost hundreds of thousands of jobs, how is it that NAFTA was a good decision for the US and probably not for Mexico and Canada?

Trade Deficit with Japan

Do we know why there was a trade deficit in June 2005 between the USA and Japan? Was there a particular reason for this?

NAFTA & Tariffs

Apparently, my professor is not in agreement with what I have given thus far. Anyone have any ideas? Following was his response: The job losses to foreign countries have not been limited to low-skilled positions. And that may not necessarily be a real concern in the long run. There are more than 3 Million white-collar ...continues

Falling Dollar

Who are the winners when the US dollar is falling.

International Interest Rates

The issue of differences in international interest rates is quite relevant and interesting as it determines a large part of capital flows. Why would we expect the difference in the 1-year interest rate on the dollar vs the 1-year interest rate on, the Euro or any other freely convertible currency, to match exactly the anticip ...continues

Exchange rates and investment decision

Suppose the CFO of a German corporation with surplus cash flow has 1 million Euros to invest. Suppose that interest rates on 1-year CD deposits in US banks are 2%, while rates on 1-year CD deposits denominated in Euros in German banks are currently 4.5%. Suppose further that the CFO expects that the (Euro/$) exchange rate will i ...continues

Explain why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds market

Explain why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds market