Answer to Question #283413 in Macroeconomics for Comfort

Question

QUESTION TEN

a. Muchuu’s old corolla emits a lot of carbon such that it contaminates the entire compound. This

carbon emission state is closely related to two (2) depravities that are closely related to what was

coined by Arthur Okun sometime in the 1970s to measure America’s economic health. Recall

yourlecture notes and comprehensively show how America would benefit through policy

coordination.

b. Kindly use any suitable model that you learnt in class to give an intuitive economic

illustration/interpretation of bilateral trade and how some parameters are econometrically

measured.[15 marks]

Answer 1

a. For example, the United States can offer to act as locomotives to the main 20 countries together, pulling the global train out of recession by providing cheap loans to restore the economies of post-war countries, and in return the United States can receive strengthening of international authority and economic advantages in the form of demand for its goods and services. This will allow US companies to receive additional funds for their own development in the future.

b. Bilateral trade is the exchange of goods between two countries that promotes trade and investment by reducing or eliminating tariffs, import quotas, export restrictions and other trade barriers. In the United States, the Office of Bilateral Trade Relations helps minimize trade deficits by negotiating free trade agreements with new countries, supporting and improving existing trade agreements, promoting economic development abroad and much more. The United States has bilateral free trade agreements with Australia, Bahrain, Canada, Chile, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Mexico, Morocco, Nicaragua, Oman, Peru and Singapore, most of the total U.S. exports.

Two-way trade can be estimated using the following economic indicators: the volume of exports, imports, growth and growth rates.