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Q. Explain the advantage a and disadvantage of globalization?
Advantages -
1. Economic growth
2. Lower cost
3. Improved availability of goods and services
4. Global prosperity and flow of productive resources
5. Incentive forresearch and adoption of innovations
6. Raise cheaper loans
Disadvantages-
1. Unavoidable risks like tradecycles
2. Undue political , economic and cultural risks
3. Problem of heavy debtedness
Explain the classical theory of employment with relaxed assumption?
The law of reciprocal demand is different from the reciprocal demand curve?
Q. "Fixed exchange rates are not even an option for most countries." Discuss. Answer: Durable fixed exchange rate arrangements may possibly not even be possible unless c
What effect do non-tradable goods have on PPP? Answer: The consequence is quite substantial. In 1997 the production of non-tradable goods accounted for about 55% of U.S GNP.
Q.. "A good cannot be both land- and labor-intensive." Discuss. Answer: In a two good or two factor models for instance the original Heckscher-Ohlin framework and the factor
Q. Why are prices of factors of production not equalized? Answer: Again this statement may not or may be argued to be true. On the other hand, the growth and large volume in
explained with example
Question : (a) Differentiate between Transaction, economic risk and Translation risk in foreign exchange market. (use an illustrative and numerical example in each case. (b)
Q. Explain why the dollar of the United States became the postwar world's key currency. Answer: 1. The untimely convertibility of the U.S dollar in 1945. 2.
By Using the figures for both the short run and the long run graphs, Demostrate the effects of a permanent increase in the U.S. money supply Economy. Try to line up your figures t
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