International economic relations control, 10 in.

International economic relations control, 10 questions.


Question 1. Suppose that demand for wheat in country X is of the form: D = 100 - 20P and the supply function S = 20 + 20P.

1. Determine the type of function of demand for imports in country X, draw a curve of demand for imports. What will be the price of wheat in the absence of foreign trade.

Consider now the country Y, the function of demand for wheat which has the form: D '= 80 - 20P and the supply function S' = 40 + 20P.

2. Determine the type of function export supply in the country and draw a curve Y export supply. What will be the price of wheat in the country Y in the absence of foreign trade?

3. Suppose now that country X and Y are trading with each other, the transportation costs are zero. At what level to set a world price of wheat? What will be the trade volume?


Question 2. South Korea exports mainly manufactured goods and imports of oil and raw materials for the food industry. Analyze the impact on trading conditions in South Korea the following events:

1. Gulf War leads to a reduction in the supply of oil on the world market;

2. Japan is expanding the export of cars in Canada and the United States;

3. FSU observed poor harvest crops;

4. The South Korean government reduced customs duties on imports of beef and citrus fruits.


Question 3. Assume that countries A and B have two factors of production - capital and labor, using which, they produce two goods - X and Y, and the two countries share the same technology. In the production of goods X intensively used capital and in the country and the capital is relatively abundant factor of production. Analyze the impact on trading conditions and the distribution of income in both countries following changes in the economy:

1. The increase in capital stock in country A;

2. The increase in the labor supply in country A;

3. The increase in capital stock in country B;

4. The increase in the labor supply in the country B.

Question 4: What is the difference between GNP and GDP, balance of payments on the balance of official capital flows, net foreign assets from official foreign exchange reserves.


Question 5. If the rising net exports, as it affects the following parameters:

1. The capital outflow from the country;

2. The exchange rate;

3. The country's foreign debt;

4. The foreign currency reserves.


Question 6. If the Central Bank increased its foreign exchange reserves, as it will affect the status of the following macroeconomic variables:

1. The monetary base;

2. The balance of official settlements;

3. The rate of the national currency;

4. The domestic credit;


Question 7. Suppose that the country has an annual balance of payments deficit of 200 billion. Dollars. The central bank wants to sterilize the balance of payments deficit. What should he take in this case? Should he carry out foreign exchange intervention?


Question 8. What does the steeper slope of the function of internal balance in comparison with the function of the external balance in the diagram T. Swan.


Question 9. In the model ISLM, if the investments are very sensitive to the interest rate is going to happen with the functions of IS and LM.


Question 10. To what kind of integration associations you might include the following international associations:

1. The agreement between Russia and Belarus economic union;

2. The agreement between Russia and Ukraine on the abolition of customs duties and transit;

3. Baltic Free Trade Area, 1993 (Estonia, Latvia, Lithuania);

4. The European Free Trade Association, 1960 (Western Europe).