Suppose that you desperately need a grade of A from your ...

[SO00]

Suppose that you desperately need a grade of A from your International Finance course and further suppose that it depends upon the grade that you will get from the term paper that you write on PPP.
 
  Let's assume that you know that your teacher believes that PPP holds anytime anywhere. What kind of evidence would you submit that would indicate that PPP holds? In other words, what kind of countries and data would you choose for your analysis to bias the empirical results regarding PPP?

Question 2

One problem with NAFTA that is not shared by other trade blocs is that
 
  A) national environmental laws differ greatly.
  B) the countries are at very different stages of economic development.
  C) the countries speak different languages.
  D) the countries are not natural trading partners.
  E) the United States and Mexico have a history of conflict.

[chreslie]

Answer to Question 1

Choose the data from:
 high inflation countries with diversified trade (i.e., open economy)
 annual data
 countries with less-developed financial markets (i.e., LDCs)

Answer to Question 2

B

[SO00]

Thank you

[chreslie]

Happy to help you