BNP Paribas' Saywell: Border Tax Is Reason to Buy Dollar

The video discusses the implications of a border tax strategy on the US dollar, highlighting how such a tax could raise the dollar's equilibrium level by 15-20%. It explains the mechanics of the border tax, which favors exports over imports, thus improving US trade terms. The discussion also covers global trade policies, focusing on China and Japan, and Japan's significant economic contributions to the US, particularly in the automotive sector.

What is the predicted impact of a border tax on the U.S. dollar's equilibrium level?

• A decrease of 15-20%

• An increase of 15-20%

• No change

• A decrease of 5-10%

How does a border tax improve the terms of trade for the United States?

• By maintaining equal taxes on imports and exports

• By increasing import taxes and favoring exports

• By eliminating all taxes on trade

• By reducing export taxes and favoring imports

Which country is highlighted as having a significant trade relationship with the U.S. in the video?

• Japan

• India

• Germany

• China

What is one of the benefits Japan brings to the U.S. economy according to the video?

• Investing in U.S. manufacturing plants

• Providing low-cost electronics

• Offering cheap labor

• Supplying raw materials

How does the video describe the employment impact of Japanese car manufacturers in the U.S.?

• They are major employers in the U.S.

• They have no impact on U.S. employment

• They employ a small number of Americans

• They only employ Japanese workers