2. International Trade: Economic Analysis 4

   Resources

   • International Trade: Economic Analysis 4 Scoring Guide.

   Requirements

   This assignment has two parts. Please be sure you complete both parts before submitting.Part I

   • Analyze the concept of exchange rate:
     • Explain how the dollar price of euros is determined.
     • Identify a factor that can increase the dollar price of euros.
     • Identify a factor that can decrease the dollar price of euros.
     • Explain why a rise in the dollar price of euros means a fall in the euro price of dollars.
   • Explain the purchasing-power-parity theory of exchange rates, using the euro-dollar exchange rate as an example.

   Part II

   • Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota.
     • What is the net outcome of either tariffs or quota for the world economy?

   Organize your assignment logically with appropriate headings and subheadings.

   Additional Requirements

   • Include a title page and reference page.
   • Include 3–4 pages, not counting title page and reference page.
   • Use at least three scholarly or professional resources.
   • Use APA format for citations and references.
   • Set your assignment in Times New Roman, 12 pt., double spaced.

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