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International Economics Help

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1. Describe the key factors in foreign exchange market. Explain risk and liquidity as they relate for foreign exchange market.
   Your response should be at least 500 words in length.
2. What is covered interest parity? What are the two assumptions of covered interest parity? How do investors use covered interest arbitrage to maximize their investment returns?
   Your response should be at least 500 words in length.
3. Analyze the effect of the political economy on trade agreements and policy. Analyze the various countries to which the United States actively trades or has an embargo upon. How does this fluctuate with the political economy? Use contemporary examples or examples from history to illustrate your point.
   Your response should be at least 500 words in length.

4.As of March 2013, the U.S. deficit balance was $16 trillion. Why do think the U.S. government should be concerned? Should the government be equally concerned, if it were a surplus?
Your response should be at least 500 words in length