Questions:
1. You are the chief economic advisor to the President of Chile. You have been asked by the President to provide complete analyses of the reasons why Chile should move to a free market system. What are your arguments and which are the strongest for Chile to move in this direction?
2. The EU is preparing to retaliate against the U.S. for a U.S. imposed quota on the importation of Wine to the U.S. What would you recommend to the EU Trade Committee to best implement this policy of retaliation? On the other side of the fence, if you were a senior trade advisor to the U.S., what would you recommend as the U.S. response?
3. Until approximately the middle of 2014, the U.S. dollar had been depreciating against most major currencies. Since June, 2014, the U.S. dollar has been appreciating against most major currencies. Should the U.S government take actions to reverse this most recent trend? If so, what should they do and why? If not, why not? Given present economic conditions in the U.S., should the Federal Reserve do anything to reverse or slow down this trend or are its hands pretty much tied?
4. There is a great deal of analyses and discussion about exchange rate movements in the long-run versus the short-run. What are the major factors that affect these movements in the long-run versus the short-run? Why are the differences so important?
5. SPECIFY YOUR COUNTRY_________CHINA_______.
A. What FOUR major forces do you think will affect them the most over the next twenty years and why are they the most important? RANK THEM.
B. Do these forces in A. above relate to the U.S. in the future?
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