Question 1 1. What factors determine the demand for British pounds in foreign ex

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Question 1 1. What factors determine the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system? Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Question 2 1. Why can't all the balance of payments accounts be in surplus? Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Question 3 1. How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs? Explain. Who are the winners and losers from trade restrictions? Given that trade restrictions impose losses on an economy, why are trade restrictions so common? Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Question 4 1. Describe developing countries and how they differ from industrial market economies. How can international trade aid development? In what ways does the international economy impose problems on developing countries? Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Question 5 1. How can two countries both be better off as a result of trade? Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations

Explanation / Answer

Q.1

There are a number of factors that can determine exchange rates in a system with a flexible exchange rate. In general, these factors have to do with the relative levels of demand for the various currencies. Let us look at some of the most important of these factors.

First, there is demand for exports from a given country. The higher the demand for these exports, the greater the demand for that country

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