1) How would you characterize US trade policy since the Great Depression of the 1930s? Reinforce your argument with concrete examples of US trade policy.

2) GATT and its successor, the World Trade Organization, have established a set of rules for the commercial conduct of trading nations. Explain.

3) Discuss the economic-integration project known as the European Union in its different stages. Briefly characterize why we have come to refer to the EU as “multi-speed Europe.”

4) Discuss the key motives behind foreign direct investment. Compare (statistically) the FDI of US corporations with those of foreign multinationals in the US. Why do many emerging-market economies welcome FDI by US multi-nationals in their economy?

5) Discuss the structure of the balance of payments in terms of its different accounts (and their respective sub-accounts)! How is the US currently faring in terms of its balance of payments with the rest of the world? Why is the US not like any other debtor nation?

6) Discuss (and, if possible, give contemporary examples of) exchange-rate quotations, in terms of spot rates, forward rates, real exchange rates, effective exchange rates! What happens when a currency depreciates against another currency?

7) Under what conditions (see Marshall-Lerner Condition) will a depreciation effectively help reduce a country’s trade deficit? What is the J-curve and how does its presence in effect alter (or perhaps even undermine) this adjustment process?

8) Compare (by listing and assessing the pluses as well as the minuses) of flexible exchange rates versus fixed exchange rates! How do countries decide which exchange-rate regime to pursue?