What will happen to a nation's economy or open market when there is a large new oil reserve has been discovered in that country?

Q: The United States and the countries of Europe are trading partners. If the average income of dollar…

A: Here, it is given that the average income of US citizens has increased when US and Europe are…

Q: Which factors may effect export and capital sensitivity in a country? And what type of policies may…

A: The eight factors that influences the value of a country ‘s exports and imports are as follows:   i.…

Q: Suppose Americans suddenly develop a strong taste for Canadian whiskey.    What happens to the…

A: Foreign exchange market is the market for exchanging currencies. foreign exchange market…

Q: Describe the potential advantages to the economy if the government offers an export subsidy

A: A subsidy refers to benefits provided by the government to firms or households. These benefits are…

Q: What factors will shift the supply and demand for currency?

A: Demand refers to the quantity of money willing to borrow at the given interest rate. Money is…

Q: Economic exposure can be managed by balancing the sensitivity of revenue and expenses to exchange…

A: Impact on an organization's cash flows due to currency fluctuations on account of change in the…

Q: What difference might it make to the Australian economy if the trading relationship between China…

A: In today's well-integrated and connected economies across the globe, both the volume and direction…

Q: Discuss the impact of the lockdown in China and the war in Ukraine on the global economy

A: SUMMARY- China's retail and modern creation dropped strongly in April, as lockdowns in the nation…

Q: How much of one good exchanges for a unit of another good is known as Balance of Trade Terms of…

A: When countries engage in international trade, they exchange one good for other.

Q: Question 21 Suppose supply is given by P = 2Q and demand is given by P = 1000 - 2Q. What will happen…

A: Equilibrium is achieved at the output level where Qs equals Qd.

Q: If the world price of a good is lower than its domestic equilibrium price, the country will:

A: when the domestic price of the good is higher than world price, opening of free trade will result in…

Q: Explain the effect of a weak Kenya Shilling to the demand for our country’s exports and imports

A: ‘Kenya Shilling(KES)’ is the official and most stable currency of some of the counties. Despite its…

Q: 7 Q. China is known to price its exports differently in international markets compared to price in…

A: Trade is important for countries all around the world. In trade, exports and imports of goods and…

Q: In Belarus, the government doesn’t allow trading of its ruble outside a narrow price range, which…

A: Equilibrium refers to the situation where the demand and supply of goods is equal. The price at this…

Q: What is an export supply curve? What is an import demand curve? How do such curves relate to the…

A: Export demand curve: This is an upward sloping curve which represents the goods and services…

Q: When US assets are more attractive to foreign investors, what happens to the demand for dollars vs…

A: In a market such as crops and laptop, equilibrium emerges when the units desired to be offered by…

Q: When the Federal Reserve buys government securities (bonds) in the open market, how will it affect…

A: Open market operations (OMO) refers to when the Federal Reserve buys and sells primarily Treasury…

Q: Suppose supply is given by P = 2Q and demand is given by P = 1000 – 2Q. What will happen in this…

A: Supply : P=2Q Demand : P=1000-2Q Equilibrium price : Demand=Supply 2Q=1000-2Q 4Q=1000 Q=250 P=500…

Q: When the value of the American dollar increases with respect to other countries' currency, most…

A: An increase in the value of the American dollar would be termed as an appreciation of the American…

Q: In 2015, the European Commission proposed giving individual member states the right to ban imports…

A: Genetically Modified Organisms(GMO) are products that have been worked on in laboratories to…

Q: A growing trend to "Buy American" may encourage U.S. automakers to increase political pressure on…

A: To understand the impact that is reflected by the Toyota's decision to begin manufacturing in United…

Q: What do the terms internal balance and external balance mean in open-economy macroeconomics?

A: The open economy refers to the economy which has a trading relationship with the rest of the world.…

Q: What factors will shift the supply and demand for currency?

A: In the civilized economies, money became the predominant method of trade, replacing barter system as…

Q: and appreciating currency against almost all other currencies, what options are available to you to…

A: The fundamental issue here isn't just pricing adjustments, but solutions that allow the marketer to…

Q: What could have been a possible solution to the Soviet oil drilling problem?

A: Soviet Union: It is formally the Union of Soviet Socialist Republics. It was a Communist express…

Q: Would cappuccino by the cup or Prada handbags have wider price variation in a free trade area like…

A: Free trade area refers to the area where goods and services can move from one place to other easily…

Q: Companies that reduce their margins on export products in the face of appreciation of their home…

A: As a result of appreciation exports are going to decline. If they reduce their profit margin , they…

Q: How do changes in exchange rates affect international trade?

A: The exchange rate is determined by the demand(DD) & supply(SS) of currency. It is an important…

Q: Why exports of fish and fish products are essential to the economies of many countries and regions?

A: According to Secretary of Commerce Wilbur Ross, recreational and commercial saltwater fishing in the…

Q: Using demand and supply curves for the Japanese yen based on the $/¥ price for yen, an increase in…

A: An increase in the US inflation rates would cause a fluctuation in Japan's exchange rate since the…

Q: If U.S. securities pay 6 percent interest, and if Great Britain’s securities pay 8 percent interest,…

A: If the interest rate is more than people tend to invest more in that security as it would fetch…

Q: How might exchange rate volatility impact international trade?

A: Answer: Introduction: The exchange rate refers to the price of one currency in terms of other…

Q: Do you think that the United States should phase out dependence on imported oil?

A: Do you think that the United States should phase out dependence on imported oil?   Yes, I personally…

Q: Evaluate the international trade effect as a reason for the downward sloping aggregate demand curve

A: The total amount of products and services purchased in a given economy over a specific time period…

Q: Will an increase in attractiveness of the US as a tourist destination DECREASE or INCREASE the value…

A: Will an increase in attractiveness of the US as a tourist destination DECREASE or INCREASE the…