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Explain the implications international capital flows problem.
Implications:
• FDI can assist physical capital accumulation and result within growth - usually beneficial but needs dividend payments
• Capital speculative inflows are to be discouraged.
Procedure for export under deferred paymet
How does the exchange rate influence the benefits of trade? Mutually beneficial international trade arises specified the exchange ratios lie among the internal opportunity cost
Explain how getting right price affected the market for promoting development. Getting prices right implies: • Abolishing price controls as well as subsides on fundamentals.
How is the installation and commissioning affects the IS project? Installation and commissioning: This stage of a project is frequently either forgotten or underestimated
What are Harrod-Domar assumptions? The H-D (Harrod-Domar) model assumes as: • Fixed capital output ratio. Nonetheless, diminishing marginal returns to capital element exist
What are the limitations of comparative advantage? Limitations of comparative advantage: International trade needs wide specialisation. This can have drawbacks as given b
Explain the elasticity of price expectations?
How do institutions influence development? Institutions development influence: Institutions matter since they give opportunities for people and firms to participate into
how does the effect of inflation affect the spending ability of fixed income earners
QUESTION 1 (a) What are the objectives and instruments of monetary policy? (b) "With financial liberalisation, there is a need to shift from direct instruments to indirect m
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