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When the bus stops suddenly, the book slides forward off the seat. In the reference frame of the ground, which of the following is correct? a) b) c) d) e) A net force acted on it. No net force acted on it. It remained at rest. It did not move, but only seemed to. Gravity briefly stopped acting on it. 7. Consider a cart on a horizontal frictionless table. Once the cart has been given a push in the x-direction and released, what will happen to the cart? a) b) c) d) e) It slowly comes to a stop. It continues with constant acceleration. It continues with decreasing acceleration.

It continues with constant velocity. It immediately comes to a stop. 8. Off to the Races: F v From rest, we step on the gas of our Ferrari, providing a force F for 4s, speeding it up to a final speed v. If the applied force were only 1/2 F, how long would it have to be applied to reach the same final speed? a) 16s b) 8s c) 4s d) 2s e) 1s 9. Two blocks of the same mass are connected by a string and are pulled across a frictionless surface by a constant force. Will the two blocks move with constant velocity? a) Yes, both blocks move with constant velocity. b) No, both blocks move with constant acceleration. ) The two blocks will have different velocities and/or accelerations. 10. Referring to figure in Q9, will the tension in the connecting string be greater than, less than, or equal to the force F ? a) Greater than. b) Less than. c) Equal to. 11. Force and Two Masses: F m1 a1 a2 = 2a1 F m2 F m2 m1 a3 A force F acts on mass m1 giving acceleration a1. The same force acts on a different mass m2 giving acceleration a2 = 2a1. If m1 and m2 are glued together and the same force F acts on this combination, what is the resulting acceleration? a) 3/4 a1 b) 3/2 a1 c) 1/2 a1 d) 4/3 a1 e) 2/3 a1 12.

Bowling vs. Ping-Pong I: F12 F21 In outer space, a bowling ball and a ping-pong ball attract each other due to gravitational forces. How do the magnitudes of these attractive forces compare? a) b) c) d) e) The bowling ball exerts a greater force on the ping-pong ball. The ping-pong ball exerts a greater force on the bowling ball. The forces are equal in magnitude. The forces are zero because they cancel out. There are actually no forces at all. 13. Bowling vs. Ping-Pong II: In outer space, gravitational forces exerted by a bowling ball and a ping-pong ball on each other are equal and opposite.

How do their accelerations compare? a) b) c) d) e) They do not accelerate because they are weightless. Accelerations are equal, but not opposite. Accelerations are opposite, but bigger for the bowling ball. Accelerations are opposite, but bigger for the ping-pong ball. Accelerations are equal and opposite. 14. A ball tied to a string is being whirled around in a circle. What can you say about the work done by tension? T v a) Tension does no work at all. b) Tension does negative work. c) Tension does positive work. 15. You lift a book with your hand in such a way that it moves up at constant speed.

While it is moving, what is the total work done on the book? ?r FHAND v = const a=0 mg a) b) c) d) e) mg ? ?r FHAND ? ?r (FHAND + mg) ? ?r Zero None of the above. 16. Two paths lead to the top of a big hill. One is steep and direct, while the other is twice as long but less steep. How much more potential energy would you gain if you take the longer path? a) b) c) d) e) The same as the short path. Twice as much. Four times as much. Half as much. No PE gained in either case. 17.

A hole is drilled through the center of Earth and emerges on the other side. You jump into the hole. What will happen to you? Hint: Inside earth, when you are at a distance r away from the center, the gravitational force on you is just the force due to your body mass and the earth mass of sphere of radius r from the center. ) a) b) c) d) You fall to the center and stop. You go all the way through and continue off into space. You fall to the other side of Earth and then return. You won’t fall at all. 18. A proton and an electron are held apart a distance of 1 m and then released. As they approach each other, what will happen to the force between them? a) It gets bigger. b) It gets smaller. c) It stays the same. 19.

Continuing from Q18, which particle has the larger acceleration at any time? a) Proton. b) Electron. c) Both the same. 20. Continuing from Q19, where would they meet? a) In the middle. b) Closer to the electron’s side. c) Closer to the proton’s side. 21. Considering a vibrating pendulum as shown in the figure. i) At which of the above time is the kinetic energy a maximum? ii) At which of the above time is the potential energy a maximum? iii) At which of the above time is kinetic energy being transformed to potential energy? iv) At which of the above time is potential energy being transformed to kinetic energy?

INTERNATIONAL ECONOMICS 8 Running Head: INTERNATIONAL ECONOMICS 1 International Economics Name Institutional

INTERNATIONAL ECONOMICS 8

Running Head: INTERNATIONAL ECONOMICS 1

International Economics

Name

Institutional Affiliation

Explain how advocates of strategic trade policy differ from the classical free market advocates in their treatment of externalities. Your response should be at least 75 words in length.

Advocates of strategic trade policies recognize that the classical free trade arguments consider externalities at length. They maintain the difference that the classical theory was based on a perfect competition and did not appropriately appreciate the most likely externality forces. However, the modern theories based on imperfect competition can. Here, the externality is the abilities of an organization to capture the expensive innovation based fruits. Based on perfect completion, classical theory neglected the factor due to the large fixed costs which are involved in the innovation, research and the development, and this cost ensures that the number of competitors will be smaller in an industry.

Discuss the justifications and the tenets of the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO).Your response should be at least 200 words in length.

World Trade Organization (WTO), an international organization was established to liberate and supervise the world trade. Being the successor of General Agreement on Tariffs and Trade (GATT), formed in 1947 in expectations that soon it would get replaced by United Nation’s specialized agency to be referred to as International Trade Organization which was never materialized, the GATT remarkably proved successful.

The General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), generally are seen as the world’s most successful economic organizations established in post-First World War period. With their most significant achievements being the accomplishment of reduction on levels of tariffs and non-tariff barriers on trade which had emerged during the great depression in 1930s.

Their second major achievement was the establishment of a reasonably successful self-enforcing system on dispute settling among members through set measures and principles by trade expert panels and more recently, appellate body. Members adhering to the two basic principles of GATT/WTO, namely that sin absence of customs unions and free trade agreement the most favorable tariff extended to a single country must be extended to other countries, and foreigners should get same treatment as domestic citizens which also proved success in reduction of tensions among trading nations.

Respond to the following statement: “Anti-dumping laws are good for a nation.”Your response should be at least 200 words in length.

There is an anti-dumping agreement within World Trade Organization which allows affected nations to take necessary action for compensation due to injuries caused by foreign exporters who dump their products in the domestic market. Dumping is where a country exports products at prices lower than the price it normally charges in its home market. Many countries impose stiff laws to protect themselves from products they believe they are being dumped in their domestic market. The WTO allows governments to take action where there is genuine injury to the competing industry domestically.

Anti-dumping duties are protectionist tariffs which domestic governments may impose on foreign imports that it believes are being priced under the fair market value. For example in the United States, the International Trade Commission (ITC) has imposed anti-dumping duties which bases on the investigation and recommendation from the department of commerce. The ITC is an independent government agency and duties many times exceed 100% of the value of the goods. They apply in the event when a foreign company sells an item significantly below its production cost. The logic behind such laws is to save domestic jobs, but also may lead to domestic consumers paying higher prices thus reducing international competition of domestic companies which produces similar goods.

A nation’s balance-of-payment can be grouped into several categories. List and describe these categories. Your response should be at least 75 words in length.

The balance of payments (BOP) is the methods which countries use in monitoring all international monetary transactions in a specific time period. It is usually calculated in every quarter and every calendar year where all trades conducted both publicly and privately are accounted for in order to determine the amount of money flowing in to and outside the country.

Balance of Payments categories may include; Current Account, which involves trade, Capital Account which includes sales and purchase of assets, and Financial Account which includes government-owned assets such as foreign reserves.

Concerning the balance of international indebtedness, when is a country a net creditor or a net debtor? Your response should be at least 75 words in length

The 1970s is remembered as the period of drastically expanding international capital movements and course where fundamental change of financing current account deficits for developing countries took part. Grants, direct investments and grant-like flows, and which during the mid 1960s accounted for well over half of net flow of the developing counties net flows of financial resources.

A creditor nation has cumulative balance of payment surplus. A creditor nation has positive net investment after it has recorded all financial transactions which are complete between the country and the entire world.

Is it possible to trade foreign exchanges in the future markets? How does such trading differ from the forward market? Your response should be at least 200 words in length.

Foreign exchange market encompasses the purchasing power conversion from a currency to another, credit extension dominated in a foreign currency, bank deposits of foreign currency, foreign trade financing and foreign currency trading options and future contracts.

The foreign exchange market participants are categorized in to bank customers, international banks, non-bank dealers, foreign exchange brokers, and central banks. The international banks provide the basis of foreign exchange market. Central banks at times they intervene in the foreign exchange market in order to influence the currency price against that of major trading partner, or a nation that it “pegs” or “fixes” its currency against.

Future market is a central financial exchange where standardized futures contracts, which is the contract which involves buying specific quantities of financial instrument or quantities at a specific price with the delivery set at a future specified time.

Currency future contracts are market to market daily and investors may exit their obligation to sell or buy the currency prior to the delivery date of the contract and this may be done through closing out the position. The currency futures prices are determined after the contract is signed, as it is in the forex market, only and the currency pair is exchanged on the date of delivery, normally sometime in the distance future.

Using an example to explain your response, describe how exchange rates are determined in a free market. Your response should be at least 200 words in length.

Exchange rate is one of the most crucial determinants of a nation’s relative level of economic health. They play a very important role in the nation’s level of trade which is very critical almost in every free market economy around the globe. However, exchange rates are among the most analyzed watched and governmentally manipulated economic measures. They matter on a little scale as well and affect the real return of an investor portfolio.

In a free market, the exchange rate between currencies is determined by demand and supply. Assuming that only two currencies are there, a dollar and a pound, and there is one factor determining the exchange rate, trade in goods and services. Now if a person wants to start selling classic American vehicles, to British consumers, The cars being bought from an American dealer who will be paid in dollars not pounds, and thus it will be necessary to exchange the pounds in to dollars. Pounds will therefore be supplied and demand dollars on the foreign exchange market.

Normally, fit will not be necessary to arrange the exchange. One will only get the bank to transfer the money to and the American bank will sort out the issue of exchange rate (Carbaugh, 2013).

References

Carbaugh, R. J. (2013). International economics (14th ed.). Mason, Ohio: South-Western.