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Seminar 1 – Questions
Question 1
Explain why do firms become multinational Was globalization responsible for the slowdown of MNE business during the financial crisis of 2008
Question 2:
Why do many developing countries fix their currencies, while emerging economies adopt a crawling peg (state the difference between both first)
Question 3:
What do we mean by the impossible trinity when comparing fixed to free float exchange rate regimes. what are the possible policy mixes that a nation could have
Question 4:
Is a strong currency good or bad for the domestic economy
Question 5
Donald Trump has shown his disagreement and willingness to revise NAFTA (The north American Trade Agreement). Before him, Ross Perot, a former Presidential candidate of the Reform Party, which was a third political party in the United States, had strongly objected to the creation of the North American Trade Agreement (NAFTA), which nonetheless was inaugurated in 1994.
a.Explain NAFTA and state what are the merits and demerits of Perot’s and Trump’s position on NAFTA
b.By doing so, explain what position would you take if you were in power
c.A new deal was agreed in 2019 by the 3 countries’ presidents (known as the United States-Mexico-Canada Agreement, or USMCA). What are the main points of the revised agreement


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