Quiz Questions for  December 8

The three announced quiz questions will usually be drawn from the reading assigned for the previous meeting or from my notes for the previous meeting or class discussion during that meeting.  If a quiz occurs on this date, it will consist either of two questions from the three below, or one question from those below plus a question about the reading assigned for this day.

Material in brackets is not part of the question.

1. What is a floating exchange rate?  How is its value set?  [The $, for instance, is a floating currency.]

2. Much international trade consists of movement of goods and services across state boundaries but within a single company.  This is called intra-firm trade.

What are some uses and abuses of intra-firm international trade?  [Hint: check out transfer pricing.]

3. Put yourself in the shoes of an American political Realist.  You witness a globalizing economy, with increasing quantities of cross-border financial transactions. How do these transactions affect the measurement of the relative power of your state?