Benefit of this arrangement to country

Assignment Help Business Economics

Reference no: EM13984259

Suppose that country A pegs its currency to the currency of country B. Which of the following will NOT be a benefit of this arrangement to country A?

increased capital flows between the two countries because of increased certainty of future exchange rates

lower costs of economic transactions costs between the two countries, leading to welfare gains for country A.

lower transactions costs for A to conduct international trade with country B

decreased migration between the two countries because of increased certainty of future exchange rates

Reference no: EM13984259

Questions Cloud

Resale price maintenance or predatory pricing : Complete the following table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing. Scenario Tying Resale Price Maintenance Predatory Pricing Cubit is the only firm producing office..

Consider intertemporal production economy with money : Consider the intertemporal production economy with money of Chapter 12( WIllamson). the government decides that the use of credit cards is bad, and introduces a tax on credit card balances. at is, if a consumer or firm holds a credit card balance of ..

In comparison to a floating exchange rate : In comparison to a floating exchange rate, the effect on the volume of trade in a fixed exchange rate is:

More borrowing by firms in the domestic currency : More borrowing by firms in the domestic currency is one way to reduce currency mismatch. What would be the major issue if government insured repayment of the loans at a low cost?

Benefit of this arrangement to country : Suppose that country A pegs its currency to the currency of country B. Which of the following will NOT be a benefit of this arrangement to country A?

Ignoring taxes-what is the current share price of your stock : You own 2,200 shares of stock in Avondale Corporation. You will receive a $1.60 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $60 per share. The required return on Avondale stock is 20 percent. Ignoring tax..

When a fixed exchange rate system is adopted : When a fixed exchange rate system is adopted, it results in all of the following except:

Which three key concepts drive intra-industry trade : Which three key concepts drive intra-industry trade? Explain how each of these three forces justifies intra-industry trade patterns!

Why not they may be viewed as perfectly competitive : For each of the following industries, explain why or why not they may be viewed as perfectly competitive.

User Account

All Pages