Internal Trade and Capital Flow

Question 1

1.Import Quota
2. import tariff

3. Export voluntary restrains

4.Capital restrictions objectives: (4)

Answer 1

1.Restrições de quantidade importação.
2. Imposto

—> Ambos feitos por individual country

3. Da pra fazer um paralelo com taxa aduaneira

4.
. reducing price vol
. Protect local suppliers
.Maintain fixed exchange rates
. Keep domestic interest low

Question 2

Objectives of
World Bank
FMI
World trade org

Answer 2

1.World Bank
Fight poverty
Distribute funds (Development

2. IMF (FMI)
   Expand international trade
   Distribute funds (EM)
3. World trade org
   Expand international trade

Question 3

cost and benefits of international trade

Position of domestic producers and suppliers

What tariffs do to prices

Answer 3

BENEFITS
(importing )consumer -
+ Choices,
+ Competition,
- prices

Exporting
+ Demand,
+ jobs,
+ profits

COSTS (domestic producers)
- need to be more efficient
lower prices,
layoffs

Domestic suppliers
Benefit from TARIFFS

RAISE prices internally
(Domestic consumer se fode)

Question 4

1.Monetary union
2. Economic union
3. common market
4. custom union
5. Free trade

Answer 4

1. Monetary
   I) All barriers of imports and exports removed
   II ) Set of polices with non members
   III) All barriers with labor n capital goods removed (with members)
   VI) Common institucional Econ policy
   V) Same currency
2. Economic union
   I ) Common institucional policy
   II) Barriers of labor removed (with members)
   III) Same trade restrict. with non members
   VI) All barriers of exports and imports are removed
3. Common market
   (Economic)
   - Equal policy
4. Custom Union
   (Common market)
   - Removing barriers of labor and capital goods

5 Free trade
Only have the no barriers to export and imports

Question 5

Accounts

CAPITAL
CURRENT
FINANCIAL

todos tem 3

Answer 5

Current: (Flows goods and services)
Income receipts
Unilateral trades
Merchandising and services

(x-m) = Gov Savings + Priv Savings - investments

Gov + Priv = Domestic savings

Financial
Government ownd Assets
Foreign going assets
.Domestic assets

Capital
. Capital transfer and acquisition
. Disposal of non-produced
. non-financials

Question 6

Beneficial from trade

comparative advantage

Absolute advantage

Answer 6

Colocar um good sobre o outro.

O denominador determina qual é meu

CUSTO DE OPORTUNIDADE

de produzir um, e nao produzir o outro.

ex. 14 cloth. 8 corn

14/8 = 3.5 (Deixo de produzir 3.5 cloth)

Absolute
A country can have an absolute advantage and still have lower competitive advantage

Question 7

Gross National Product

Gross Domestic Product

Answer 7

Avalia todos os ganhos de cidadoes dentro e fora do pais

Avalia todos os bens finais produzidos no pais

Question 8

Ricardian model of trade

Hechscknek-Ohlin (Peter quilo)

Answer 8

1. based on LABOR
2. based on LABOR AND CAPITAL