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Define the balance of payments problem in international capital flows.
Balance of payments (BoP): It inflows capital as like:
• Foreign direct investment (FDI) into machinery and plant. In the long term Gross Domestic Product rises but profits are sent back to investing country. The role of multi-national companies.
• Short term loans that can be withdrawn at short notice leading to abrupt balance of payments and exchange rate crisis as like Argentina in 2002.
Suppose a firm’s budget were large enough to employ 100 units of either labor or capital, the cost of a unit of labor being the same as a unit of capital. The production function i
There are two agents, A and B. Both have preferences represented by a von Neumann-Morgenstern utility function u(c s j ) = ln (c s j ), where c s j is consumption of agent j in
what is nature of elasticity?
The word double-dip is a negative -situation .This scenario has economically shall move back and switch in to a deeper and longer worse situation. A double dip recession states to
Explain the notion of the hidden momentum of population growth. Why is this an important concept for projecting future population trends in different developing nations?
Explain the concept of scarcity, and the role it plays in decision making
Explain the ways in which businesses may try to influence government policy in a way that might benefit them. In the light of government regulation, businesses may become inv
What is a firm
Draw the line of competition
How is Micro or Microfinance credit assists in financial markets? Micro or Microfinance credit assists: • Grow businesses and raise the income of the poor • Extra income
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