Gold was demonetized as an international reserve asset
The formation of the two tier gold system was a remedy that could only delay the
inevitable collapse of the gold exchange standard. By 1971, The U.S stock of monetary gold
has declined to $11 billion,
Identify and discuss at least two challenges of the international trading system. Make sure to use
examples to illustrate your understanding of the concept.
International trade benefits many workers. It enables them to shop for the cheapest consumption go
After Second World War, the leaders of independent nations observed a need to form an
international organization, which can enhance the trade between different nations. After series of
negations, in 1947, The General Agreement on Tariffs and Trade (GATT)
There is an anti-dumping agreement within WTO, which allows the affected nation to take
necessary action to compensate for the injury cause by foreign exporters dumping their products
in the domestic market (Carbaugh, 2013).
Foreign exporters can be consi
Balance of payments is a measure of all economic transactions between Canada and other
countries in a given year. The balance of payments is in surplus when receipts in the current and
capital accounts exceed total payments to foreigners. It is in deficit
The long-run determinants of exchange rates include market fundamentals such as consumer
preferences for domestic and foreign goods, government trade policies, productivity levels, and
relative price levels. With relative price levels the increase in the
Considering the impacts of high capital mobility, government intervention is inevitable in
developing fiscal policies to maintain the stability of the domestic currencies. Under fixed
exchange rates, the government uses the expansionary policy to ensure t
Country risk refers to political and s closely related to political development in a country, and
the governments views concerning international investments and loans (Carbaugh, 2013).
It is dependent on changes in the business environment that may advers
International economic policy coordination can be defined the integration of the world economy
by focusing on achieving mutual gains to the countries on the macroeconomic policy decisions
(Carbaugh, 2013). This concept enhances coordination of the various
The table below provides hypothetical data on the productivity of single unit of resource in
producing steel and VCRs in South Korea and Japan.
Referring to the table below, what is the opportunity cost of one VCR in
Referring to the table below, w