The welfare impact of a preferential trade agreement depends on the difference between the amount of new trade that takes place because of the agreement and the change in international trade patterns that arises because of it

Joe's monthly income increases from $1,000 to $2,000. As a result, he decreases the number of his fast food meals from 20 to 5 per month. To Joe, are fast-food meals a normal or an inferior good? What kind of elasticity can tell the answer? Explain

What will be an ideal response?

Debt equity swaps may lead to

(a) increased foreign ownership. (b) greater domestic inflation. (c) lower debt servicing requirements. (d) all of the above. (e) none of the above.