One way to equalize imports and exports would be to pass a law that (1) in order

Question:

One way to equalize imports and exports would be to pass a law that (1) in order to import, importers must provide a certificate certifying that an equal value of exports had occurred; and (2) in order to export, exporters must provide a certificate certifying that an equal value of imports had occurred.

a. If the trade is balanced, what would the price of these certificates be?

b. In the current U.S. situation, what would the price of these certificates be?

c. In the current Chinese situation, what would the price of these certificates be?

d. Would such a law make exchange rate adjustment more or less likely?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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