Week 5 Knowledge Check Study Guide Concepts Mastery TRADE DEFICITS Questions 100% 1 100% 2 TRADE TARIFFS 100% 3 TARIFFS 100% 4 EXCHANGE RATES 100% 5 TRADE RESTRICTION 100% 6 INTERNATIONAL TRADE; Score: 6 / 6 Concept: TRADE DEFICITS Mastery 1. 100% Questions 1 In the U.S. current account‚ most of the trade deficit results from an excess of imported A. merchandise and services B. merchandise C. services D. transfer Correct: The Correct Answer is: B. Concept: INTERNATIONAL
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“How can I explain the difference in currency (strength or weakness) by comparing the type of imports and exports in Mexico and USA?” Generally a strong currency is defined by a stable and high value in comparison to other currencies. A weak currency shows fluctuations in its value and it is seen by other economies as a relatively cheap currency. The strength or weakness is influenced by exports and imports and influences exports and imports. Theoretically speaking more exports from an economy
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The Chinese government originally pegged the value of the yuan against the U.S. dollar in an attempt to compete with the U.S. and the rest of the world. Because China is an export driven economy‚ the government thought exports would be less expensive with the pegged value of the yuan. This is a possible benefit of pegging the value of the yuan against the U.S. dollar or any other foreign currency. Therefore‚ the pegged exchange rate undervalued the yuan by as much as 40%. This fueled a boom in Chinese
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Cameroon - All Economic Indicators (2011) Growth Indicator | Level | Units | As Of | 1Y Chg | ~5Y Ago | ~10Y Ago | ~25Y Ago | GDP | 26 | Billion USD | 2011 | 14.16% | 20 | 11 | 14 | GDP Per Capita | 1‚225 | USD | 2011 | 11.38% | 1‚084 | 663 | 1‚325 | GDP Per Capita at PPP | 2‚259 | USD at PPP | 2011 | 3.83% | 2‚096 | 1‚817 | 1‚880 | GDP as Share of World GDP at PPP | 0.06% | % of World GDP | 2011 | 0.00% | 0.06% | 0.07% | 0.10% | Real GDP | 9‚495 | Billion USD | 2011 | 4.20% | 8‚465
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INTRODUCTION OF THE STUDY The topic is selected for the project is the Gold price fluctuations and gold as a investment. I selected this topic because of the change in the price of gold and people’s interest in investing in gold as an investment. This topic is selected due to the fluctuating nature of gold and changing trend of gold price. Nowadays people tend to invest their money in gold so as they can increase their investment according to the price of gold at that particular period.
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Basket Of currencies: It’s a selective group of currencies ( Dollar‚ Yen‚ …) in which the average is used as a measure of the value‚ and its commonly used to avoid the risk of any currency fluctuating. An Example of pegging to a basket of currencies is Kuwait: In May of 2007 Kuwait dropped the peg to U.S dollar and pegged to a basket of currencies in the beginning Kuwait inflation rate rose from 0.69% in the second quarter of 2007 to 4.2% in the first quarter of 2008. Overall‚ the increase in
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Partition of Bengal (1947) The Partition of Bengal in 1947‚ part of the Partition of India‚ was a religiously based partition that divided the British Indian province of Bengalbetween India and Pakistan. Predominantly Hindu West Bengal became a province of India‚ and predominantly Muslim East Bengal became a province of Pakistan. The partition‚ with the power transferred to Pakistan and India on 14–15 August 1947‚ was done according to what has come to be known as the "3 June Plan" or "Mountbatten
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Why does a country like Venezuela impose capital controls? According to this case‚ the character of the case; Santiago‚ part of the pharmaceutical distribution business was working during a time when Venezuela had been “Tumultuous”. Political turmoil affected its economy as well. He opposed Hugo Chavez regiment and was thus “technically” not allowed to exchange domestic currency for foreign currency (as he needed it for his import business). The president of the corrupted county suspended sale
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Indian Economy and the curse of Gold The Indian economy grew at around 5% for the fiscal year ending March 31‚ 2013‚ down from 6.2% the previous year. With economic growth slowing for nearly three years now and the economy expected to grow at around 4.8% this year‚ the slump is attributed to several persistent structural issues – prominent amongst which a widening Current Account Deficit (CAD). To quote the RBI governor‚ "The biggest risk to the economy stems from the CAD." CAD represents
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Source: Bloomberg Business Week Title: India’s Rupee Slides to a Record Low Author: Roben Farzad According to the author the Indian rupee hit a record low 62.005 per dollar before closing at 61.655 in Mumbai. He also mentions that Bombay Stock Exchange (BSE) equity index drops by 4%‚ largest drop in nearly 2 years and the yield on India’s 10 years government bond is at its highest since 2011. He mentions capital flight (Assets rapidly flowing out of a country or region)‚ slow economic growth
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