19 Does your country have a balanced budget?
20 Any major conflicts / disputes with other countries that could hinder trade?
21 What is the currency in your country?
22 Does your county have a floating or pegged currency?
23 Discuss how our Peggers vs. Floaters generic description discussion (Size, Open / Closed Economy, Harmonious / Divergent Inflation, and Concentrated / Diversified Trade Partners) fits (or does not fit) your country.
24 What are the current exchange rates with the USD and all of your country’s major trading partners you have mentioned? Trace the 2-year history of exchange rates between these countries. (A chart will help…one that incorporates our correlation of currency discussion from the course would help even more).
25 Discuss the central bank in your country?
26 What has your country’s central bank done with interest rates in the recent past? Why?
27 Is there a recent history of central bank intervention?
The greatest external threat to South Korea has been its northern neighbor, North Korea. On June 25, 1950, North Korean forces invaded South Korea. A civil war broke out in 1950 between North and South Korea. The United States along with other forces sided with South Korea. In 1953 an armistice was signed between the two Korea’s which put an end to armed hostilities and also divided the two countries along the 38th parallel. To this day, there is a two mile wide demilitarized boundary between the two. For protection, The U.S. still contains military presence in South Korea of 37,000 troops to defend against any North Korean attack. In October 2007, the South Korean President, Roh Moo-hyun, and North Koreas’s leader, Kim Jong-il, signed a treaty that replaced the previous armistice in 1953. This was a permanent peace agreement for the Korean Peninsula. Both leaders agreed to the declaration and issued this statement: “The South and North share the view that they should end the...