Assignment: Global Economic

Answer two of the following five questions.

1. Imagine that you are planning a trip for the next fall and you are considering either going to Argentina or to Hawaii. You look at the currency exchange rate for the last year and you assume that the trend will continue in the same direction. Your flights and hotels are paid by your company and you are equally excited to go to both places. What is your choice and why?

2. How does the capital flight situation in emerging markets affect your company and industry? Read the following article "Emerging markets' shine dims as capital flight nudges $1tn in a year" (The Guardian, August 19th 2015) to have a better idea of the situation and do your own research.

3. What do you think about dollarization?

4. Explain why the United States dollar became the postwar world's key currency and express your own views in this respect.

5. "New BRICS bank in Shanghai to challenge major institutions", by Gabriel Wildau, July 21st 2015.

What are the main possible consequences of the BRICS bank for the U.S. dollar and why? How would these consequences affect the world economy? What is the position of the international organizations with the new BRICS bank and why?