1309ps02 - for the existence of so many trade restrictions...

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International Studies and Economics 13 Winter 2009 Problem Set #2 Due: on Wednesday, February 18, at the end of lecture NOTE: Late problem sets will not be accepted unless there is an official medical excuse. Your answers SHOULD BE HANDWRITTEN. 1. How do the wages and employment of U.S. textile workers adjust to an opening of the U.S. market to textile imports and increasing mobility of capital? In answering this question, examine the likely changes in the U.S. and developing-country markets. 2. Whereas free trade can in principle make everyone better off, in practice trade restrictions abound throughout the world. State and briefly discuss some of the reasons
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Unformatted text preview: for the existence of so many trade restrictions. 3. Problem 5 in p. 584 or Krugman-Wells. 4. Problem 7 in p. 584 of Krugman-Wells. 5. Discuss how increases in GDP do not necessarily translate in improvements in the welfare of citizens. 6. Using a demand and supply approach, examine the effects of the following changes on the exchange rate between the Japanese yen and U.S. dollar: A. A reduction in U.S. interest rates; B. A reduction in the Japanese price level; C. A reduction in Japanese GDP; D. An increase in U.S. GDP....
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This note was uploaded on 02/20/2009 for the course ECON 62020 taught by Professor Skaperdas during the Winter '09 term at UC Irvine.

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