ECON303 Lecture Notes - Topic 1 Trade = Mutually...

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Trade = Mutually beneficial. Government Policies on Trade: Tariff Tax on imported goods. Quotas Restriction on volume of imports Similar effect as tariff Export subsidies Subsidy to local exporters Regulations Exchange rate Price of one currency in terms of another GNP Measure of national income Value of all final goods and services produced by a nation’s factors of  production and earned by its nationals in a given time period GDP Value of all final goods and services produced in an economy. Balance of Payments Current Account Flows of goods and services Financial Account Flows of financial assets (financial capital) Capital Account Flows of special categories of assets Current Account + Financial Account + Capital Account = 0. Official (international) reserve assets Foreign assets held by central banks in case of instabilities in international  markets. Spot Rate Exchange rates for currency exchanges on the spot, or when trading is  executed in the present. Forward Rate
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This note was uploaded on 05/26/2010 for the course ECON 1160 taught by Professor Byrke during the Spring '10 term at Macomb Community College.

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ECON303 Lecture Notes - Topic 1 Trade = Mutually...

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