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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
M. Porter competitive advantage theory
Q. Using a figure, show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run. Answer: A t
1. International trade: (a) Explain the concept of comparative advantage between two countries (use a numerical example to illustrate, and do not use the identical example in th
Describe International Trade Theory?
what is leontiff paradox.
1. Species that have reached the extinction threshold and are on the verge of extinction – beluga whales, African elephants, mountain gorillas and the California condor might be cl
Q. Explain how an increase in the real exchange rate affects exports and imports. Answer: While the real exchange rate rises domestic products are cheaper relative to
Q. What are the main factors determining the aggregate money demand? Answer: Three major factors: the price level, interest rate and real national income. A increase i
Q. One reason international trade has a powerful effect on the distribution of income within countries is that some factors are "specific", and therefore cannot move costlessly fr
Q. Explain the Law of One Price. Give an example. Answer: The law of one price affirms that in competitive markets free of transportation costs and trade barriers ide
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