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TEST 1

FINANCIAL AND ECONOMIC GLOBAL STRATEGY FIN 6550

WILLIAM PATERSON UNIVERSITY

COTSAKOS COLLEGE OF BUSINESS

DEPARTMENT OF ECONOMICS, FINANCE AND GLOBAL BUSINESS

DR. TSANACAS

INSTRUCTIONS

I. YOUR GRADE DEPENDS ON YOUR CONVICTION,


CORRECTNESS, ELABORATION AND ELUCIDATION OF YOUR
ANSWERS.
II. EACH ESAY COUNTS 20 POINTS.
III. YOU SHOULD WRITE ABOUT ONE PAGE SINGLE SPACED PER
QUESTION

ESSAYS

1. Elaborate on the volume, the direction of trade and the


composition of trade using trade theories presented in the class
2. Explicate the key reason that the US has been running
international deficits for the last close to 40 years, and,
presently, is the largest debt nation globally.
3. Assess the impossible trinity concept in the context of the
fixed/flexible exchange rate regimes
4. Trace the evolution of the international monetary system up the
its current status and offer a judgment as to its future
5. What are the various account and balances of the Balance of
payments and what are the major factors that affect the various
entries in each of the accounts

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