Foreign exchange market, International Economics

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how is exchange rate determined?

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Q. How can international trade in assets make both countries better off? Answer: By permitting them to reduce the riskiness of the return on their wealth and by allowin

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Q. It has been argued that economic dualism that typifies relatively less developed or poor countries, is a barrier to participation in the global village, and lessens the chances

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what are the limitations of net barter terms of trade

Can currency boards make low-inflation policies credible, Q. Based on the c...

Q. Based on the case study, answer the following question: Can currency boards make low-inflation policies credible? Answer: Currency boards have the power to bring in anti-

Discuss the relationship between ppp and law of one price, Discuss the rela...

Discuss the relationship between PPP and the Law of One Price. Answer:  The law of one price is applies to individual commodities while Purchasing Power Parity applies to the g

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Logic of the heckscher-ohlin model, Q. Suppose Australia, a land (K)-abund...

Q. Suppose Australia, a land (K)-abundant country and Sri-Lanka, a labor(L)- abundant country both produce labor and land intensive goods with the similar technology. Following t

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