The world economy control with answers 10 questions

Question 1. Explain the difference between the theories of absolute and comparative advantage in international trade as an example of trade between Germany and Russia, if Russia exports oil and weapons, and Germany - machinery and automobiles. For some couples export-import goods can be traced action theory of absolute advantages, and for some - comparative advantage.

Question 2. What is the theory best explains the following situation: England exports to the German computers, and Germany to England automobiles. Give a detailed answer.

Question 3. You are the advisor to the government of Latvia, the main revenue which brings the agricultural sector. Government to support agriculture decides to impose additional duties on imported products of the industry. It selects from two options, either to increase tariffs on imported milk by 15% or increase of 25% duty on cheese and introduce a tariff quota for this product. Which option do you recommend to the Government in terms of stimulating the development of national agriculture.

Question 4. Forecast of development of the world economy by the year 2000 is reduced to the following events:

- Rising oil prices to $ 11. Per barrel in mid-1998 to $ 20. Per barrel;

- Increasing demand for gold due to distrust of the dollar as the main reserve currency in connection with the introduction of the euro;

- An increase in the rate of economic growth in Europe in connection with the transition to a single currency;

- An increase in the flow of foreign direct investment in the countries of Eastern Europe and the former Soviet Union 5 times;

- The rise of the global arms market due to the worsening political tensions in the South and South-East Asia;

- The deepening of the economic crisis in the newly industrialized countries of Asia;

- Economic integration of Russia, Belarus, Ukraine and Kazakhstan, with the resumption of a single ruble zone.

Imagine that you are a dealer monetary adviser office and you are required to answer the question about the future behavior of the following currencies: US dollar, German mark, the Japanese yen, the Russian ruble.

Question 5. Croatia wants to stabilize the exchange rate of its currency against the German mark. Economic growth in Germany amounted to 7% a year in Croatia 2%. Money supply in Croatia increased by 15%, in Germany by 5%. Expected inflation in Croatia 8%, in Germany - 2%. What are the means of internal and external macroeconomic policies should use Croatia to provide the desired stabilization.

Question 6. under threat of severe stock market crisis in May 1998 ruble devaluation threatens. What measures should take the central bank to prevent the devaluation of the ruble. (Try to specify what really made the Central Bank and any additional funds it could use).

Question 7: From 1992 to 1997. Russia is constantly increasing trade surplus, and therefore had a net creditor of the world economy. At the same time, for the same years, the country has increased external borrowing to finance the deficit of the capital account and financial operations. Suggest some reasons for this paradox.

Question 8: What are the parameters of the investment climate in Russia will have the greatest influence on the decisions of foreign investors in Russia to carry out direct, portfolio and other investments:

- The adoption of the State Duma a package of laws on tax benefits for foreign investment in the domestic automotive industry;

- Removing restrictions on the transfer of interest income from placing funds on deposit in the Russian commercial banks;

- Increasing the yield of state short-term bonds;

- Removal of restrictions on foreign participation in the privatization of the oil and gas complex of Russia;

- Rapid economic growth in the food industry and increasing the profitability of shares of enterprises in the industry.

Question 9: What type of foreign investment has the best impact on the economy of the h