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INTERNATIONAL FINANCE
International finance is concerned with the mobility of financial capital across the countries, and the problems and opportunities this mobility presents the individual countries. It would not be too inaccurate in present day context to say that while the international trade deals with the current account and international finance deals with the capital account of the BOPs. The issues like the choice of exchange rate regime and of the modern-day balance of the payments crises also fall firmly within the purview of the international finance.
illustrate the circular flow of income of an open economy and explain the effects of various injections and withdrawal in the circular flow?
Q. If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at E 0 ? An
Q. Discuss the costs and benefits of FDI to host country? Benefits to host country Availability of scarce factors of production Improvement in the balance of payment Strengthen
Explanations of FDI and the MNC
defination, types
Question: Banks contribute to the economic development of a country. Banks have always been financing projects that help individuals and enterprises fulfill their plans. Howev
Q. What is an SDR? Answer: An SDR abbreviation of Special Drawing Right at the IMF and holds a place as a world reserve currency some countries especially those that do
Welfare Effects of Tariff can be understood as follows: It is important to understand what the welfare effects for the tariff are. While a tariff might seem desirable because i
Q. Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will h
Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency? Answer: A vehicle currency is one specifically widely used to denominate inter
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