International Trade Economic Analysis Description This assessment has two parts. Be sure to complete both parts before submitting.
Part 1 Analyze the concept of the 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 2 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 assessment logically with appropriate headings and subheadings. Support your work with at least 3 scholarly or professional resources and follow APA guidelines for your citations and references. Be sure you include a title page and reference page. Additional Requirements Include a title page and reference page. The number of pages: 3–4, not including title page and reference page. A number of resources: At least 3. APA format for citations and references. Font and spacing: Times New Roman, 12 points; double-spaced.