International Trade and Finance

Calculate opportunity costs to determine comparative advantage in a two-country, two-good model.

Calculate the total gains from trade resulting from specialization and determine the range for mutually beneficial terms of trade.

Calculate the welfare effects of a tariff, including changes in surplus, government revenue, and deadweight loss.

Calculate the welfare effects of an import quota and compare its impact to that of an equivalent tariff.

Calculate the balances of the current, capital, and financial accounts from international transaction data.

Calculate the equilibrium exchange rate in a floating system using supply and demand for foreign currency.

Apply the Marshall-Lerner condition to a scenario and illustrate the J-curve effect on the trade balance.