What is meant by purchasing power parity model to forecast

Reference no: EM133494721

Problem I. There are variousfactors affecting the Exchange rates in the market. Describehow inflation and terms of trade in a country move the exchange rates upwards and downwards in an economy.

Problem II. Explain the term protectionism and in what ways it benefits a country. Also discuss the disadvantages of having a protectionist policy.

Problem III. What is meant by the Purchasing power parity model to forecast exchange rates? Explain the same with the help of an example.

Problem IV. Economic development is something that every government desires so that the benefits can be passedon to the citizens of the country.In this context,discuss the trade policies of macroeconomic stability and privatization that a country can pursue.

Problem V. Discuss the role of the different factors of production in a society and how they help in economic prosperity.

Reference no: EM133494721

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