What real-world complications keep purchasing power parity from being a complete explanation of exchange rates?
What will be an ideal response?
First, not all goods are traded internationally. Second, products are differentiated, so they would not be expected to have the same price. Third, governments impose barriers to trade, preventing prices of goods from equalizing between nations.
Economics
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NAFTA is believed to have __________ manufacturing productivity, especially in the maquiladora plants.
a. raised b. lowered c. had no effect on d. greatly hindered
Economics
Which of the following increases the demand for U.S. union labor?
A) an increase in the minimum wage B) an increase in the demand for imported goods C) new laws that ease immigration restrictions D) All of the above cause an increase in the demand for union labor.
Economics