Discuss the determination of exchange rates. Include

a. the concept of purchasing power parity

b. the reasons exchange rates might change

Demonstrate the Principle of Comparative Advantage. Discuss the most common arguments against free trade, and why you agree or disagree with each.

What is "urban bias," and how does it relate to MNC's?

Do you believe that arguments on the displacement of indigenous production represent a legitimate challenge to MNC's role in developing countries?

Define multinational corporation.

How do the largest multinational corporations (name a few) compare in size of annual product to the country of _________________?

Do you believe the Uruguay Round serves as a legitimate tool for improving people's productivity and quality of life? Explain.

Respond to the article "TNCs Control Two-Thirds of World Economy." Include a justified opinion as to whether you believe the Principle of Comparative Advantage still applies to world trade.

What are the economic costs and benefits which a less developed country can expect when it receives aid from a more developed country? Explain whether aid or trade would be more effective.

The so called "Asian Tigers" have often been in the news in the past six months. Why?

Gross Domestic Product is a common measurement of economic welfare. What are the weaknesses of GDP as a measure of welfare--especially as an indicator of development.

Why is the debt problem of Less Developed Countries also a problem for More Developed Countries?

Using all available resources--not including other people--but including the library's computers, encyclopedias, and atlasses, as well as the books in our room--address the following questions for the country of ________________________.

1. Which is a greater problem, overall (average) income levels or wealth distribution? Explain.

2. Does your country face problems of "urbanization?"

3. Is the primary, secondary, or tertiary sector the greatest source of incomes? Describe.

4. Make a general description of the country's geographical, social, and political features--especially with regard to factors that might inhibit growth or development.

Short Answer

1. What was the defining ethic of the feudal economies?

_________________________________________

2. "Doing well at one’s calling is the best way to praise God." This is a good description of ?

_________________________________________

3. Name two of the philosophers that helped develop the ethic of Individualism.

_________________________________________

_________________________________________

4. David Ricardo is known for this economic principle of trade:

_________________________________________

5. What is Say's Law? _________________________________________

6. Who ultimately pays for tariffs on imported goods?

_________________________________________

7. Match the type of imperialism with its author

The use of import substitution as a development strategy is likely to be found in countries where

I. industrialisation is believed to be the key to economic success.

II. foreign currencies are in short supply.

III. there is slow growth in primary exports

A. I only

B. I and II

C. II and III

D. I, II, and III

Which of the folowing has not been a feature of IMF aid packages to less developed countries in recent years?

A. A reduction in the level of import controls

B. A reduction in the level of government subsidies

C. An appreciation of the exchange rate

D. Increased levels of taxation and reduced government spending to reduce the size of the budget deficit

Countries depending on non-oil primary products have had economic difficulties because

A. their exports have grown too rapidly

B. their citizens do not wish to buy manufactured products

C. their terms of trade index has increased

D. prices of primary products have risen less quickly than those of manufactures

Which of the following would be regarded as typical features of less developed countries?

I. Low productivity in agriculture

II. A rapidly expanding labor force

III. A high dependence on the production of primary products

A. I only

B. I and II

C. II and III

D. I, II, and III

Less developed countries tend to find that

I. the demand for primary products is highly elastic

II. there is a tendancy for the terms of trade to move against primary products

III. the prices of primary products are volatile

A. I only

B. I and II

C. II and III

D. I, II, and III

A barrier to economic growth in many less developed countries is

A. rapid population growth

B. free trade

C. foreign investment

D. a relatively high savings ratio