Excessive current account surpluses, International Economics

Assignment Help:

Q. Using an equation, explain why governments prefer to avoid excessive current account surpluses.

Answer: This pursue from the national income identity S = CA + I which says that total domestic savings S is divided among foreign asset accumulation CA and domestic investment I.


Related Discussions:- Excessive current account surpluses

Treflers case of missing trade, Q. The Heckscher-Ohlin model is famous for ...

Q. The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to define reality. One manifestation of this fact is Trefler's Case of Missi

Effects of increase in real national income on interest rate, What will be ...

What will be the effects of an increase in real national income on the interest rate? Answer: An enhance in real national income will increase the interest rate.  If investment

Who is liable for discrimination?, een subject to a discrimination complain...

een subject to a discrimination complaint as a result of their recent recruitment campaign- They told the recruitment agency that they were looking for ‘young women with flair'' to

CSA, what is meant by country specific advantage?

what is meant by country specific advantage?

Why the exchange rate model based on ppp is long-run theory, Explain why th...

Explain why the exchange rate model based on PPP is a long-run theory. Answer:  PPP theory is a financial approach to the exchange rate.  It is a long-run theory for the reason

What is a convertible currency, Q. What explains the nearly universal scope...

Q. What explains the nearly universal scope of the Great Depression? Answer: The international gold typical played a central role in starting deepening and spreading the Great

Discuss the costs and benefits of fdi to host country, Q. Discuss the costs...

Q. Discuss the costs and benefits of FDI to host country? Benefits to host country Availability of scarce factors of production Improvement in the balance of payment Strengthen

Strategies of globalization and regionalization, Describe the strategies of...

Describe the strategies of globalization and regionalization and explain when each strategy can be used effectively.  Give examples of successful companies that have followed each

Benefits enjoyed by indian companies, "1. Describe the important benefits e...

"1. Describe the important benefits enjoyed by Indian companies through TRIPs. Elaborate the main objectives of WTO in global economy. 2. "Leontiff paradox is proved in the Indian

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd