The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions. If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT:
a. Even more intraregional trade of goods across the three countries.
b. Lower transaction costs of trading within North America.
c. A greater difficulty in helping Mexico as you can no longer deflate the Mexican peso.
d. Less migration of workers across the three countries.
e. An elimination of correlated macroeconomic shocks across the countries.
Question 2
Which of the following is TRUE about firms organized along functional lines?
a. Workers develop functional expertise
b. Workers can easily share information within their division
c. They foster the exploitation of economies of scale
d. All of the above
Aquilia Area in Color:
Increasing Costs of Natural Disasters
Illustration of the Brain Lobes Showing Location of Broca’s Area and Wernicke’s Area
American Foreign Trade, 1790–1812
Pulmonary embolism. The purple shaded section shows the area of the lung that is dying from lack of ...
The popliteal area. Avoid heavy pressure over the back of the knee joint.