Posted by Joe on .
Choose an argument in favor of protectionism. Are there any weaknesses in this argument? Be specific.
do some research, then take a shot. what are some arguments in favor of protectionism?
I have got the first 4 I think but can't figure out the last 2
For each of the following situations, indicate the direction of the shift in the supply curve or the demand curve for dollars, the factor causing the change, and the resulting movement of the equilibrium exchange rate for the dollar in terms of foreign currency:
a. American-made cars become more popular overseas.
A rightward shift in the demand for dollars curve would occur caused by an increase in demand for American made automobiles. The equilibrium exchange rate for dollars would increase.
b. The United States experiences a recession, while other nations enjoy economic growth.
A leftward shift in the demand for dollars curve would occur caused by a lack of interest in US exports. This shift would cause a decrease in the equilibrium exchange rate for dollars.
c. Inflation rates accelerate in the United States, while inflation rates remain constant in other nations.
A rightward shift in the supply of dollars curve would occur because American exports cost more. The equilibrium would also decrease.
d. Real interest rates in the United States rise, while real interest rates abroad remain constant.
A rightward shift in the demand for dollars curve would occur because there would be an increased foreign purchase of American stocks and bonds. The equilibrium exchange rate for dollars would increase. Supply cure for dollars shifts leftward because Americans are investing more in American securities. This also causes the equilibrium exchange rate to increase.
e. The Japanese put quotas and high tariffs on all imports from the United States.
f. Tourism from the United States increases sharply because of a fare war between airlines.