1. International Trade: Economic Analysis 4



    This assignment has two parts. Please be sure you complete both parts before submitting.Part I

    • Analyze the concept of exchange rate:
      • Explain how the dollar price of euros is determined.
      • Identify a factor that can increase the dollar price of euros.
      • Identify a factor that can decrease the dollar price of euros.
      • Explain why a rise in the dollar price of euros means a fall in the euro price of dollars.
    • Explain the purchasing-power-parity theory of exchange rates, using the euro-dollar exchange rate as an example.

    Part II

    • Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota.
      • What is the net outcome of either tariffs or quota for the world economy?

    Organize your assignment logically with appropriate headings and subheadings.

    Additional Requirements

    • Include a title page and reference page.
    • Include 3–4 pages, not counting title page and reference page.
    • Use at least three scholarly or professional resources.
    • Use APA format for citations and references.
    • Set your assignment in Times New Roman, 12 pt., double spaced.
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