Required Material
Gerber, James (2013). International Economics, 6e. Upper Saddle River, NJ: Pearson.
Subject: Global Economy
Introduction and Institutions
Assignments
The following Short Answer Questions should be completed and submitted to the course faculty via the learning platform for evaluation and grading. Submit your responses to these questions in one WORD document. List the question first, and then your response. In most cases your responses to individual questions should be no more than 500 words.
1. How can globalization and international economic integration be measured?
2. What does the trade-to-GDP ratio measure? Does a low value indicate that a country is closed to trade with the outside world?
3. Trade and capital flows were described and measured in relative terms rather than absolute terms. Explain the difference. Which terms seem more valid—relative or absolute? Why?
4. What are the new issues in international trade and investment? In what sense do they expose national economies to outside influences?
5. What are the arguments in favor of international organizations? What are the arguments against them? Which do you think are stronger?
6. Give the arguments for and against free trade agreements. How might the signing of a free trade agreement between the United States, Central America, and the Dominican Republic have harmed Bangladesh?
7. What are public goods and how do they differ from private ones? Give examples of each.
8. Describe the main tasks or functions of each of the following:
• The International Monetary Fund
• The World Bank
• The General Agreement on Tariffs and Trade
• The World Trade Organization
9. When nations sign the GATT, they bind their tariffs at their current level, or lower. Tariff binding means that they agree not to raise the tariffs except under unusual circumstances. Explain how tariff binding in the GATT prevents free riding during a global slowdown.
10. Critics of global institutions have a variety of complaints about the WTO, the IMF, and the World Bank. Explain the main categories of complaints.