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(Solution document) What are different stages of economic integration? What are the policy implications of these different stages? How is Canada integrated with the US?


  1. What are different stages of economic integration? What are the policy implications of these different stages? How is Canada integrated with the US? 
  2. Are preferential trading agreements welfare improving? What factors determine the welfare changes of such agreement? 
  3. What is nominal exchange rate? Based on purchasing power parity (PPP) theory, what determines nominal exchange rate between currencies of two countries? 
  4. What is PPP? Does it hold and if not, why? 
  5. What are the advantages and disadvantages of fixed and flexible exchange rates? What has Canada adopted? 

 


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