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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.
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
1. International trade: (a) Explain the concept of comparative advantage between two countries (use a numerical example to illustrate, and do not use the identical example in th
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
Q. Explain why price levels are lower in poorer countries. Answer: One theory explicate the difference in prices on different endowments of capital and employment Bhagw
what are the theories supporting protectionism
What constitutes the basis for trade? What are the gains from trade in terms of production and consumption? Use theories and examples from a country of your choice.
International Capital Mobility is explained below: The case for the international capital mobility was most evidently articulated by MacDougal in 1960. He presented a framework
illustrate the circular flow of income of an open economy and explain the effects of various injections and withdrawal in the circular flow?
what is this all about
Ask qu. What are the various forms of economic integration? estion #Minimum 100 words accepted#
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