International Business Homework
Question
1: Name and briefly describe 5 (or 6) Theories
of International Trade.
Hint: In your own words, please describe 5 below theories of
International Trade
·
Mercantilism
·
Absolute Advantage
·
Comparative Advantage
·
Heckscher-Ohlin
·
Porter’s National Competitive
Advantage
Question
2:List and describe
ALL elements of
BOP. Provide an example of a transaction that could be
recorded in each of sub accounts.
Question
3:3 types of exchange rates, 3 types of markets. Give
short definitions of them.
Hint:3 types of exchange rates
Independent floating exchange rate system
Managed floating exchange rate system.
Fixed exchange rate system
Hint:3 types of markets
Spot market
Forward market
Futures market
Question
4: How PPP is different from Law of One Price?
