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  • An import tariff is a tax or duty levied on … commodities. #171
  • An … is a tax or duty levied on exported commodities. #172
  • …refers to purchase of goods from a foreign country. #173
  • …is a fixed percentage on the value of the traded commodity. #174
  • According to the theory of comparative advantage, countries gain from trade because #175
  • In most countries, foreign trade represents a significant share of … #176
  • The International Fisher equation states that... #177
  • To understand the current nominal exchange rate, we need to know all of the following except... #178
  • Suppose the following bilateral spot exchange rates are being quoted for the Danish krone (DKK), the US dollar (US$) and the euro (€):   US$/€ = 1.5 DKK/€ = 7.0 DKK/$ = 5.0   If you start with 100€, the most you could end up with in a single round of triangular arbitrage would be... #179
  • (A) … interest rate parity involves (B) … domestic and foreign interest rates and the spot and the (C) … exchange rates. #180
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