Economics DQs

1. According to Aureliano (2020), “The Forex market is the most active financial market on the planet, and also has the highest liquidity. Every day, traders from all the corners of the globe take part in foreign exchange transactions worth more than $4 trillion. Because this market touches every country’s economy and is a highly interconnected marketplace, it is extremely sensitive to geopolitical events that can cause an immediate effect on the prevailing currency rates.” (para. 2)

Question: Given the powerful influence of geopolitical forces on trade in goods, services, and currencies as explained in Aureliano (2020),, is the concept of “free trade” still relevant in international economics today? Why or Why Not?

References

Aureliano, L. (2020). How Do Geopolitical Factors Impact the Forex Markets? Zen Trader. January 13, 2020. Retrieved from http://www.zentrader.ca/blog/how-do-geopolitical-factors-impact-the-forex-markets/

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2. According to the Economic Policy Institute, (2019), “From 1979 to 2018, net productivity rose 69.6 percent, while the hourly pay of typical workers essentially stagnated—increasing only 11.6 percent over 39 years (after adjusting for inflation). This means that although Americans are working more productively than ever, the fruits of their labors have primarily accrued to those at the top and to corporate profits, especially in recent years.” (para. 2)

Question: the concept of “work” as defined in the first Practice Assignment videos for this week identical to the concept of “employment” or “job” as we use it in daily life? Why or Why not?

References

Economic Policy Institute – EPI. (2019). The Productivity–Pay Gap. Updated July 2019. Retrieved from https://www.epi.org/productivity-pay-gap/