by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Dealers in the Interbank Market? Most people and firms who are exchanging a substantial quantity of currency go to a bank, and most banks provide foreign exchange as a service to customers. These banks (and a few other firms), known as dealers, then trade...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Unsafe Consumer Products Argument for Restricting Imports? One argument for shutting out certain imported products is that they are unsafe for consumers. Consumer rights groups have sometimes warned that the World Trade Organization would require nations...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
Who Demands and Supplies Currency in a Foreign Exchange Market? In foreign exchange markets, demand and supply become closely interrelated, because a person or firm who demands one currency must at the same time supply another currency—and vice versa. To get a sense...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Opportunity Costs relate to International Trade? Both parties can benefit from specializing in their comparative advantages and trading. By using the opportunity costs it is possible to identify the range of possible trades that would benefit each country....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Comparative Advantage give rise to Mutually Beneficial Trade? When nations increase production in their area of comparative advantage and trade with each other, both countries can benefit. Again, the production possibility frontier is a useful tool to...
