International Trade: Economic Analysis 5

In 3–4 pages, analyze the concept of exchange rate and explain the purchasing power parity theory of exchange rates. Explain why a quota is more detrimental to an economy than a tariff.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

Requirements

This assessment has two parts. Be sure to complete both parts before submitting.

Part 1

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 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.
Number of pages: 3–4, not including title page and reference page.
Number of resources: At least 3.
APA format for citations and references.
Font and spacing: Times New Roman, 12 point; double-spaced.
Must have an introduction and conclusion

International Trade: Economic Analysis 5 Scoring Guide

Criteria	Proficient	Distinguished
Analyze the concept of exchange rate.	Analyzes the concept of exchange rate.	Analyzes the concept of exchange rate; explains how rates are determined, the factors that affect rates, and the relationship between different monetary systems.
Explain the purchasing power parity theory of exchange rates.	Explains the purchasing power parity theory of exchange rates.	Analyzes the purchasing power parity theory of exchange rates.
Explain why a quota is more detrimental to an economy than a tariff.	Explains why a quota is more detrimental to an economy than a tariff.	Explains why a quota is more detrimental to an economy than a tariff using real world examples.
Correctly format citations and references using current APA style.	Correctly formats citations and references using current APA style with few errors.	Correctly formats citations and references using current APA style with no errors.
Write content clearly and logically with correct use of grammar, punctuation, and mechanics.	Writes content clearly and logically with correct use of grammar, punctuation, and mechanics.	Writes clearly and logically with correct use of spelling, grammar, punctuation, and mechanics; uses relevant evidence to support a central idea.

Best writers. Best papers. Let professionals take care of your academic papers

International Trade: Economic Analysis 5