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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.
Question 1: a. Describe the role of trade union in the wage bargaining process. b. Formulate a model that tests for the wage gap between union and nonunion earnings in a
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QUESTION (a) Differentiate between the fixed and floating exchange rate models. (b) Discuss the effectiveness of the floating exchange rate model. (c) Explain the mechani
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