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Q. At the conclusion of World War I, Germany, as a punishment, was obliged to take a large transfer to France in the form of reparations. Is it possible that the actual reparations can have improved Germany's economic welfare?
Answer: Such a result isn't likely though theoretically, if France's income flexibility of demand for Germany's exports was higher than Germany's income elasticity of demand for its own exportable after that the real income transfer associated with these reparations may possibly have improved Germany's terms of trade and improved its balance of payments therefore helping Germany in manner unanticipated in the Treaty of Verssaille.
Q. Explain why the oil price shocks after 1973 made countries unwilling to revive the Bretton Woods system of fixed exchange rates. Answer: Using the GG - LL framework
Q. Why is the H.O. model called the factor-proportion theory? Answer: The H.O. model survey the limitations and the nature of presumptuous that the sole determinant of compar
The external economic environment could have implications for the project in various areas. There is no tax in Saudi Arabia; this is a significant political effect on the projec
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What exactly is IMF and why is it so important in helping Europe? How exactly does it help Europe and what effects does its help have on rest of the world?
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Q. What is the domino effect or contagion? Answer: The definition is the defencelessness of even seemingly healthy economies to crisis of confidence generated by events
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