Select two of the questions below and answer in essay format.

1. Define absolute advantage and comparative advantage and explain how they affect trade between nations. Give an example of an absolute advantage that China has over the United States and an example of a comparative advantage that the United States has over China.

2. Explain how the exchange rate impacts the value of currency (in the economy). Compare and contrast using the U.S. dollar and the euro.

3. Describe how socio cultural differences can become barriers to international trade and how these differences can be addressed to avoid a negative impact on global business.

4. The International Monetary Fund (IMF) exists to promote international economic cooperation and stable growth. Describe how the IMF accomplishes this