ECON 2610 Study Guide - Final Guide: Eurodollar, Spot Contract, Shortage
4 Feb 2017
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Incr. in profits to foreign exporters of good due to increase of price of good from the tariff. Rent = pdom after quota pworld * qimports. Importers want to incr. value of goods: max profits by raising price. Higher goods so greater profit per good: upgrade quality. Accounting of a country"s international transactions for a particular time period. Credit: any transaction that causes money to flow into a country"s bop, shows incr. in liabilities, shows decr. in assets. Debit: any transaction that causes money to flow out of a country, shows incr. in assets, shows decr. in liabilities. Terms currency being bought in terms of this. American terms base is foreign, not the $ European terms base is the : example: euro-dollar quote of . 2120. - base currency (always comes first) is euro. When we say the exchange rate increases, the base currency appreciates. When we say the exchange rate decreases, the base currency depreciates.
