EC6062ES - International Finance and Trade Assignment - London Metropolitan University

Assignment Task

Essay Topics

The essay structure is to be maintained with the inclusion of explanation of the theories/models, application of models, comparison between models and suitable examples.

1. International investors, importers, exporters, managers of multinational corporations, and government officials all place a great deal of weight on the phenomenon of exchange rate movement. They actually have to deal with the exchange rate problem every day. Forecasters' use of theoretical models or other models was incorrect, and in-depth research needs to be done on how exchange rates are determined. Understanding the various exchange rate determination theories is crucial for finding a solution to these fundamental problems. Provide your answer with theories of exchange rate determination with clear examples.
2. The specific factor model is intended to show how trade impacts an economy where one production factor is unique to a given industry. The most intriguing findings concern the adjustments to income distribution that would occur as a nation transition to free trade. You are required to explain the specific factor model with the application of it with clear examples. “Heckscher-Ohlin model, both factors, capital and labor, are assumed to be mobile” provide a comparison between SF and H-O models with examples.
3. The operational system of the financial environment, which comprises of financial institutions, multinational enterprises, and investors, is referred to as the international monetary system. The international monetary system offers the institutional framework for setting the guidelines and practices for international payments, setting exchange rates, and facilitating capital mobility. Answer is to be provided with the characteristics of international monetary system, explanation on the Bretton Woods system and explanation on fixed vs. floating exchange rates with examples.
4. A developing country that has begun to see economic growth but is encountering unfavorable worldwide demand conditions as it increases its traditional exports experiences immiserizing growth. Explain I through Rybczynski theorem and Stolper-Samuelson theorem.