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Q. Why is it useful to make a distinction between debt and equity instruments?
Answer: Debt instruments such as bank deposits and bonds are repaid regardless of economic circumstances. Equity instruments for example a share of stock have a payoff that is linked to economic performances. Though remember the possibility of bankruptcy and the real return which is subject to domestic currency fluctuations.
draw diagram of price leadership model
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Q. Show the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighbouring European countries using the AA - DD framework. A
Q. Discuss the problems that the EMU will face in the coming years. Answer: Europe isn't an optimum currency area so asymmetric economic developments within different cou
Q. What is the real exchange rate between the dollar and the euro equal to? Answer: Let actual dollar/euro exchange rate q$/ENominal exchange rate E$/EPrice of an unchan
Foreign Direct Investment Theoretical Definition: The causal (independent) variable is the inward Foreign Direct Investment (FDI) to the technology sector. Foreign direct i
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the year of alternative / new trade theoriess
Although the elegance and comprehensiveness of transactions costs reasoning has provided the internalisation approach with a powerful logic (Rugman, 1981, 1985), it is still defici
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