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Types of Transaction on the Capital Account are stated below:
It is useful to recall the basic types of transactions recorded on the capital account: foreign portfolio investment, foreign direct investment, debt flows and aid flows. FDI and FPI are examples of significantly private capital flows. Debt flows could be official involving the multilateral agencies or the other country governments or private. Aid flows are nearly always official.
How can external trade promote economic development and growth? International trade permits increased specialisation than higher output permits economies of scale. • A big m
Q.No2 Read the following situation Consider the following parlor game to be played between two players. Each player begins with three chips: One red, one white and one blue. Ea
Question The Borneo Shop imports and sells a popular Blue Ray DVD player. The following current information about the business is available: Selling price per play
You are given the following functions in a fully competitive market: Market demand function: Qd = 20 – 3P Market supply function: Qs = 4 + P Where P is price A) In which price s
How does foreign direct investment (FDI) help development? Foreign direct investment (FDI) shows an injection of resources in the economy. When those resources are used to rai
Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P(sc) + 0.001(income) P(wm) = $4.00 P(hd) = $3.00 P(sc) = $2.00 Income = $40,000 Quantity supply of watermelons = 2
The reserve requirement is 20%. Assuming banks have no desire to hold excess reserves, calculate the money multiplier. Now assume the banks want to hold 20% of their reserves in ad
Define advocates of the International Monetary Fund argue. Advocates of the International Monetary Fund (IMF) argue • Competitive devaluations were a characteristic of the i
In 2007, Segolene Royal, in an unsuccessful bid for president of France, says that employees who lost their jobs would obtain unemployment payments equivalent to 90% of the previou
What are the restrictions of dependency theory? The restrictions of dependency theory: • Self sufficiency and import-substitution strategy mean the advantages of Internatio
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