Chapter 6
Chapter 7
Chapter 10
Chapter 11
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Chapter
6: U.S. Tariff Laws
1. What are the major features
of the following trade acts?
a.
the "Tariff of Abomination" (1828)
b.
Merrill Act (1861)
c.
Smoot-Hawley (1930)
d.
Trade Agreements Act (1934)
e.
Trade Expansion Act (1962)
f.
Trade Reform Act (1974)
g.
Omnibus Trade and Competitiveness Act (1988)
2. Under what two conditions may a member of the WTO raise tariffs on imports from other member countries?
3. Trace the stages of development of trade adjustment assistance. What two acts shaped it?
4. What is a GSP?
Which act created the U.S. GSP?
Chapter
7: Trade Organizations
1. What is the European Union's
Common Agricultural Policy? How does it work?
2. What are the features of the EU 1992?
3. What deliberations created the World Trade Organization?
4. What do the following terms
mean and what is their significance in the WTO?
a.
most favored nation principle
b.
national treatment
c.
multilateral negotiations
d.
5. What are the four major agreements that are the basis for the World Trade Organization? What do these agreements cover?
6. What is the WTO's General Council? What are its three roles?
7. What is unusual about the
voting on the WTO's Dispute Settlement Body?
Chapter
10: Balance of Payments
1. An importer receives a shipment
of goods on consignment credit. Where does the debit part of this
transaction appear in the balance of payments? Where does the credit
part of this transaction appear?
2. An American church group sends five tons of food to Latin America. Where does the debit part of this transaction appear in the balance of payments? Where does the credit part of this transaction appear?
3. Given the following data:
Exports of
goods
700
Imports of
goods
-1000
Exports of
services
200
Imports of
services
-100
Income reciepts
on U.S. assets abroad
400
Income payments
on foreign assets in U.S. -700
Government
grants and private remittances -100
Change in
U.S. private assets held abroad 400
Change in
foreign private assets held in U.S. 300
Change in
U.S. official reserve assets
-40
Change in
foreign official assets in U.S.
-60
a.
What is the trade balance?
b.
What is the current account balance?
c.
What is the official reserve transactions balance?
d.
Is the nation a net donor or net recipient of unilateral transfers?
e.
Were the U.S. monetary authorities gaining or losing foreign exchange reserves?
f.
Were foreigners increasing or decreasing their holdings of U.S. assets?
4. If G = 600, T = 400, I = 300
and S = 200, what is the current account (or net exports, X - M)?
Chapter
11
1. How do the following differ
from each other?
a.
cash market for yen
b.
spot market for yen
c.
forward market for yen
d.
futures market for yen
2. What kinds of events could shift the U.S. demand for yen to the right?
3. How would each of the following
be expected to affect the value of the U.S. dollar?
a.
German interest rates rise.
b.
U.S. interest rates fall.
c.
Canadian prices fall.
d.
U.S. prices rise.
e.
U.S. incomes rise.
4. If ius = 9%, iFrance = 6%, S = $0.40 per French Franc, and F = $0.50 per French franc, would arbitrageurs want to buy francs in the forward market or sell them forward?
5. If the current price of a
yen is $0.010 and you expect the price to rise to $0.015 one month from
now, would you want to sell yen short or buy yen long in the forward market?
created April 3, 2000, by James R. Frederick