Question: Please answer the separately. Please do not combine the answers. 14. If all other factors are held constant what is the effect of currency appreciation

Please answer the separately. Please do not combine the answers.

14. If all other factors are held constant what is the effect of currency appreciation on the earnings of domestic exporters? How about currency depreciation?

15. What role does currency appreciation and depreciation play in cross-border M&A (merge and acquisition) activity?

16. If all other factors are held constant what happens to the USD exchange rate when the price of oil increases? Why?

17. How does the price of oil impact the US trade balance?

18. Define the Terms of Trade. What happens to a country's trade balance when its Terms of Trade improve?

19. How does improvement of the trade balance impact the domestic exchange rate?

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