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In the wake of the Asian financial crisis, policymakers, governments, and academics around the world are busy devising ways to reform the global financial architecture. The plethora of articles, speeches, and essays on this topic, however, has failed to produce a consensus on the path that reforms should take, largely because the issue is highly complex.
On the one hand, foreign investment brings clear benefits. International investors provide an extra pool of lenders for borrowing nations, particularly developing countries, for increasing liquidity, lowering the costs of borrowing, and raising output.
With foreign direct investment the host country may also derive benefit from positive spillover effects such as new technologies, ideas, and skills. Even the often-criticized speculative capital flows enable investors to hedge against risk such as exchange rate fluctuations. Not all of the above capital flows constitute investment. Economists define investment as expenditure on productive, as opposed to expenditure on consumption. Hence, foreign investment is defined as the purchase of assets in Country A by residents of Country B. It is usually divided into two categories: Foreign Direct Investment (FDI). This refers to investment where the foreign investor (from Country A) owns or controls the assets (in Country B). Foreign Portfolio Investment refers to investment where a foreign resident provides the capital, but the activity is owned and operated by domestic residents.
Consider an economy in which George and Harriet consume only ale and bread
Types of production function
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Quantitative policy process depends on a portfolio of tools that have been drawn from a variety of disciplines besides discretionary political decision. Over the past two decades
what do you understand by private & public goods. Distinguish between private and public goods.
Question: Awards for excellent performance are increasingly employed within the public service in many countries. These will or will not have a financial value. Performance-rel
There has been a long history of research on ‘the policy process' which is ‘closely connected to efforts to examine the nature of power in society and to specify the necessary cond
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How has public policy helped to shape the way that urban Americans have spent their leisure time throughout the period that we have examined in class? Have such policies hindered a
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