MGCR 382 Assignment #1
MGCR 382, Winter 2017
Assignment #1- Solutions
This is a group assignment. You have been assigned to a group and the groups are binding. Any
group change requires explicit permission.
Answer all the pr
MGCR 382: International Business - Lecture 1: Trade theory
Trade Voluntary exchange of goods/services. As it is a voluntary act, trade only occurs when
both parties that are involved in trade have something to gain from one and another.
Trade policy discusses a more realistic approach on the politics that are present in reality.
Why do you think a government would intervene and implement a trade policy?
protect domestic firms against foreign competition
help domestic firms e
Exchange rate: The price of one currencies units in terms of another.
Bid rate: the price at which banks/companies are buying the certain currency. Ask rate:
the price at which the certain currency is being sold at.
Bidrate < Ask rate, as t