Addressing Unemployment through Appropriate TPAK Policy

Addressing Unemployment through Appropriate TPAK Policy DAILY TEST QUESTION 4 Competency Standards: 4. Understanding an open economy Basic competencies: 4.1 Identify the benefits, advantages and drivers of international trade 4.2 Identify foreign exchange rates and balance of payments 4.3 Explain the concepts of tariffs, quotas, export bans, import bans, subsidies, premiums, price discrimination and dumping. SOAL 1. Name the factors driving international trade! Answer: a. Differences in natural resources b. Differences in the quality of human resources c. Taste differences d. Production cost savings e. Technology differences 2. Batik Silk Indonesia 20 8 Japan 10 16 a. Absolute or comparative advantage? b. Conclusion? Answer: a. Absolute advantage b. Indonesia has an absolute lead in batik Japan has an absolute lead in silk 3. Motor Car America 20 30 Japan 40 50 a. Absolute or comparative advantage? b. Conclusion? Answer: a. Comparative advantage b. America: Motorcycle = = 0.5 Car = = 0.6 Japan: Motorcycle == 2 Car = = 1.6 Conclusion: America has a comparative advantage in cars Japan has a comparative advantage in motors 4. Batik Silk lOMoARcPSD|26370826 Indonesia 40 10 India 20 30 How much is 1 Meter of Indonesian Batik worth? - = = = 1,25 1 Meter of Indonesian Batik = 1.25 Meters of silk. 5. a. How is foreign exchange different from foreign exchange? Answer: Foreign exchange: foreign currency that has an official exchange rate record. Foreign exchange: a foreign currency that does not have an official exchange rate record. b. Name at least 4 (four) currencies that are recognized in the world as Hard Currency! Answer: - US Dollar - British Pound Sterling - Japanese Yen - Euro Europe 6. Name and explain the types of exchange rates and the exchange rate fixing system! Answer: Variety of rates: a. Selling rate: the bank's position when selling foreign currency. b. Buy rate: the bank's position at the time of buying foreign currency. Exchange rate fixing system: a. Fixed rate: set by the government b. Floating rate: set by the market / demand and supply c. Controlled floating rate: set by the market and the government 7. Unknown: Selling rate 1$ = Rp. 10,000 Buy rate 1$ = IDR 9,500 Sell rate 1 Yen = IDR 5,000 Buy rate 1 Yen = IDR 4,500 Asked : a. $200 ...................=Yen b. 200 Yen = $............ Answer: a. From $ to Yen $ to Rp : times the $ buying rate : $ 200 x Rp. 9,500.00 = Rp. 1,900,000.00 IDR to Yen: Divide the Yen selling rate = 380 Yen So, $200 = 380 Yen b. From Yen to $ Yen to IDR : times the Yen buying rate : 200 Yen x Rp. 4,500.00 = Rp. 900,000.00 Rp to $: Divide $ selling rate = $ 90 So, 200 Yen = $90 8. Name and explain 3 (three) import policies! Answer: a. Import quotas: restrictions on the number of imported goods b. Tariffs: setting high tariffs on imported goods c. Import ban: the prohibition of imports of certain goods. 9. Country A's data is as follows: Import goods= $5,000 Lending= Exported goods= $4,000 Received a loan= Received services= $4,000 $6,000 $5,000 Paid interest= $8,000 lOMoARcPSD|26370826 Provided services= $3,000 Received interest= $8,000 Prepare the balance of payments! And what is the conclusion! Answer: Debit Credit 1. Import of goods 2. Receiving services 3. Lending 4. Paying interest Total 23,000 = $ 5.000 = $ 4.000 = $ 6.000 = $ 8.000 =$ 1. Export of goods 2. Providing services 3. Receiving a loan 4. Receiving interest Total 20,000 = $ 4.000 = $ 3.000 = $ 5.000 = $ 8.000 =$ Conclusion: D > K = Deficit = $23,000 - $20,000 = $3,000 Country A's balance of payments: $3,000 DEFICIT 10. Given: Export = $15,000, Import = $12,000, Autonomous Loan = $1,200 and Accommodative Loan = $800. Asked: What is the National Stock and what is the conclusion! Answer: X = $ 15.000 M = $ 12.000 + = $ 3.000 PO = $1,200 PA = $800$3000 Stock = $1,000 Surplus = PA + Stock = $800 + $1,000 = $1,800 Conclusion: Country A's trade balance = SURPLUS $1,800