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Analyze the concept of exchange rate: Explain how the dollar price of euros is determined.


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International Trade: Economic Analysis 4 Resources International Trade: Economic Analysis 4 Scoring Guide. Requirements This assignment has two parts. Please be sure you complete both parts before submitting. Part I Analyze the concept of exchange rate: Explain how the dollar price of euros is determined. Identify a factor that can increase the dollar price of euros. Identify a factor that can decrease the dollar price of euros. Explain why a rise in the dollar price of euros means a fall in the euro price of dollars. Explain the purchasing-power-parity theory of exchange rates, using the euro-dollar exchange rate as an example. Part II Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota. What is the net outcome of either tariffs or quota for the world economy? Organize your assignment logically with appropriate headings and subheadings. Additional Requirements Include a title page and reference page. Include 3–4 pages, not counting title page and reference page. Use at least three scholarly or professional resources. Use APA format for citations and references. Set your assignment in Times New Roman, 12 pt., double spaced.


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