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1. Explain why many Asian countries set up Export Processing Zones and why China set up Special Economic Zones. What are the similarities and differences between EPZs and SEZs?
2. FDI:
(a) How do you define foreign direct investment (FDI)? Explain this concept.
(b) What are the typical motives for FDI from the perspectives of the host countries and MNCs respectively? Please discuss.
(c) What are typical modes (organizational forms) of FDI in China and what are their advantages and disadvantages? Explain.
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Q. What are the main functions of money? Answer: Money serves generally three important functions that are a unit of account, a medium of exchange and a store of value.
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Discuss the relationship between PPP and the Law of One Price. Answer: The law of one price is applies to individual commodities while Purchasing Power Parity applies to the g
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Q. Explain the phenomenon of capital flight. Answer: The reserve defeat accompanying a devaluation scare is habitually labeled capital flight for the reason that the assoc
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