Reference no: EM132503076

1.a Analyze the effects of globalization on a countries' economy, political sovereignty and societal influence in the Production and trade structure.

b) Analyze the effects of globalization on a countries' economy, political sovereignty and societal influence in the Security structure.

c) Analyze the effects of globalization on a countries' economy, political sovereignty and societal influence based on the technological structure.

2.International Monetary systems have changed overtime to suit the international system existing. These include the gold standard, Bretton Woods system and the Liberal Exchange rate system used today.

a) Outline the various characteristics of a fixed exchange rate system and when it works best.

b) Outline any 5 reasons the Bretton woods system collapsed in the 1970s.

c) In a fixed exchange rate regime, the Central Bank can pursue a sterilized intervention or unsterilized intervention. Show how a sterilized intervention, when the domestic currency appreciates, will be carried out by the Central Bank.

d) To correct a Balance of payments (BOP) deficit, the Central Bank could depreciate or devalue the currency. Derive and explain the elasticity approach / conditions to BOP adjustment when there is a deficit.