Comparative Economics Discussion

 

 

Part 1

The emergence of cryptocurrencies and stablecoins represents a transition to a more market-based based approach for stores of value and mediums of exchange, which are two of the main functions of established currencies like the yen, euro, or dollar. These new digital tools allow people more options for storing their savings or for conducting transactions. Based on our study of transitions to market-based economies, what are the main risks that people face during this market transition? Would you recommend that countries adopt these new tools quickly in order to provide people with more options, or should these tools be carefully regulated and adopted with caution? Please explain your response.

Postings must be in it’s own words – do not copy from external sources or provide quotes!

minimum 500 words

Part 2 (answer the these multichoice questions)

QUESTION 1

1. Which of the following factors inhibited the economic transition of the FSUs in the 1990s?

	A.	Limited exposure to international markets during the Soviet era
	B.	Most trade during the Soviet era was limited to exchanges between Soviet republics
	C.	FSUs were economically isolated during the Soviet era
	D.	All of the above

QUESTION 2

1. From Table 11.5, which country suffered the largest disruption in inter-republican trade with Russia after the dissolution of the Soviet Union?

	A.	Kazakhstan
	B.	Belarus
	C.	Latvia
	D.	Ukraine

QUESTION 3

1. After the end of the Soviet Union, many of the FSUs established new trade arrangements with other countries based on former trade routes or earlier empire relationships.

True

False

QUESTION 4

1. The FSUs were hampered in their post-Soviet transition because some republics had specialized in the production of key outputs (e.g., machinery, minerals, or farm output), and the other republics had little to no domestic sources for these products.

True

False

QUESTION 5

1. Which FSUs have most fully integrated with the other economies in Western Europe?

	A.	Transcaucasian states
	B.	Baltic states
	C.	Belorus and Ukraine
	D.	Central Asian republics