1. What is the balance of payment identity and what does it describe

2. President Trumps new tariff policies on imports will result in the US trade deficit wiped out in just a couple of years please comment.

3. What is hedging? Can it handle labor volatility? Does hedging require interest rate parity to hold? Please comment

4. Compare hedging with forwards (futures) and options. How is hedging related to the monetary model of exchange rates?

5. Are off-shore banking centers set up to deal primarily with illegal money? Describe the international debt crisis which began in 1982 with Mexico defaulting on its international debt. Trace the origin to the early 1970s. does this crisis compare in anyway with the collapse of the 2007-2008.