Assignment

Question 1

If the exports increase and the imports decrease, then what will happen to the trade deficit? Will this help or hurt the U.S.? In what ways is a bigger trade deficit a problem for the country? What good is the deficit? Hint: Use the currency market Supply and Demand to determine the exchange rate.

Question 2

In what ways is the trade between countries increasing? Is trade good or bad for US? What is the alternative to trade? What kind of lifestyle will the US have then? Is that a viable alternative to trade? Be specific?

Question 3

If there is increase in U.S. tourism and an increase in U.S. interest rates, then what will happen to the U.S. Dollar compared to other currencies in the foreign exchange market? Use the Supply and demand graph to determine this. Explain answer based on graph.

Question 4

In the future, based on the opportunity cost for the U.S. workers, companies, and resources, what type of products or services will the country produce? What will continue to make the US "richer" in the future? Think of the Resources of the US and how best to use the resources. It is All about the Resources.

Question 5

If the exchange rate between US and Mexico is 1 US Dollar for 10 Mexican Pesos, then that means that the US is doing better than the Mexican economy and that US consumers have 10 times more buying power in Mexico. Do you agree or disagree with the statement?

Question 6

As trade continues to grow, is there any reason that the U.S. is different than any other country? Is the world, one big market, with no meaning of what a country is? What do you think? Be specific with the comments and support your Point of View here.