5 Answered Questions for the topic International Economics
International Economics - Biased Growth
We're under the standard trade model, we have two goods (X and Y), and two countries that engage in free trade. Each country exports the goods in which it has Comparative Advantage and imports the... more
Consequences of a positive uncovered interest rate parity (UIP) spread for an emerging market economy?
Empirically we observe that the uncovered interest rate parity (UIP) does not hold; in fact the exchange rate adjusted return on an emerging market bond is higher than the return on US bonds; I... more
What is a Pareto Optimal Allocation and How do we use an Edgeworth box to Show it?
How can we use an edgeworth box to see if an allocation is Pareto Optimal? What doe Pareto optimal mean?
The Gains from forming a Free Trade Area or Customs Union Part 1
Suppose Two countries have identical demands for a product. Call it textiles. One is much better at producing Textiles. Suppose Demand is give as P = 40- (1/25) P The Supply Curve for... more