Answer two discussion questions (no plagiarism and all work must be properly cited)!

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Question 1: Explain how a developing country’s decision to reduce trade restrictions, such as import tariffs, affects its ability to borrow in the world capital market. Analyze how a country can sustain its ability to borrow in capital markets, even when their economy struggles. Question 2: Go to the IMF website at www.imf.org and find the World Economic Outlook database; then download data on the current account balance as a percentage of GDP for Greece, Spain, Portugal, Italy, and Ireland. Explain what happens to the current accounts of these countries after 2009 during the euro crisis. Analyze two reasons why these countries struggled to provide stability with their financial and monetary systems.

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