Unrealized gains from trade, International Economics

Assignment Help:

Q. Explain why large interest rate differences would be strong evidence of unrealized gains from trade.

Answer: The difference between offshore and onshore interest rates on similar assets denominated in the same currency should be small if information about global investment opportunities is transmitted resourcefully. Data demonstrate that this is the case for the Germany, Japan, United States and the Netherlands.


Related Discussions:- Unrealized gains from trade

Germanys economic welfare, Q. At the conclusion of World War I, Germany, a...

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 reparation

Balance of payments accounts, Q. "The balance of payments accounts seldom b...

Q. "The balance of payments accounts seldom balance in practice." Discuss. Answer: True the major reasons are due to the fact that data received or collected from different so

Present the case against floating exchange rates, Q. Present the case again...

Q. Present the case against floating exchange rates. Answer: 1.The discipline obligatory on individual countries by a fixed rate would be lost. 2. Undermine specu

Explain the fundamental equation of the monetary approach, Q. Prese...

Q. Present and explain the Fundamental Equation of the Monetary Approach. Answer: Suppose E$/E = PUS/PE and that domestic price levels depend on domestic money demand

Title..Haberler''s theory of oppotunity cost, Explain about constant,increa...

Explain about constant,increasing and decreasing opportunity cost

Foreign trade, What are the two main base of foreign trade ?

What are the two main base of foreign trade ?

Classical theory, What are disadvantages the classical theory of internatio...

What are disadvantages the classical theory of international trade

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd