Read the following articles and discuss the relevant questions

https://financialpost.com/executive/executive-summary/posthaste-beware-dutch-disease-canada-as-commodities-and-the-loonie-soar

Explain how the above article helps describes how an equilibrium price is reached. Specifically, how might Canada's capitalaccount be impacted by strong demand for Canadian commodities? What May eventually happen to the exchange rate?

Explain what "Dutch disease" is, and whether or not you think Canada will suffer the fate described in the article.

https://www.rfa.org/english/commentaries/energy_watch/inflation-06182021102725.html

Suppose you are a Chinese business owner facing increased input costs. Suppose that government price controls prohibit you from adequately increasing your sales price to your customers. How might that impact longer term inflation?If those supplying you commodities to build your product are NOT allowed tp increase prices as much as they would like to, what may happen to your firm's ability to purchase adequate commodities? How does all this impact the supply chain?

If you are an exporter, how does the strong Yuan impact your business? Why might you be anxious about the political/economic sounds coming out of the States?

Answer rating: 100% (QA)

The first article discusses the concept of Dutch disease which refers to the phenomenon where a countrys currency appreciates due to strong exports of ... View the full answer