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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. It is argued that import substitution is a misguided trade policy if the intent is to show long-term economic growth. Illustrate the reasons underlying this argument. Answe
Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets. Answer: For instance If the U.S price level increase by
Q. Other things being equal, a rise in a country's terms of trade enhances its welfare. What could happen if we relax the ceteris paribus assumption, and allow for the law of dema
what are the criticisms of OPPORTUNITY COST THEORY of international trade propounded by PROF.HABERLER and OHLIN
what do you understand by (reciprocal demand)offer curve
explained with example
Question 1: (a) To what extent does the structural change model of Lewis adequately portrays the development phases in most developing countries? (b) Discuss the principal a
Question 1: The main challenge facing governments in the 21st century revolves around containing and/or downsizing of public spending. Explain why reduced government interventi
critically examine the effects of tariffs on the level of employment and income distribution.
When asked by the Carnegie Commission to prepare a report on post war Preferential Trading Agreements, Viner (1950) pointed out that they are not free trade. He used the concepts o
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