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Q. What are the advantages and disadvantages of free float?
Advantages: It is one of the most suitable ER regimes for transitional countries that experience external shocks like,
a. Terms of trade deterioration
b. Loss of competitiveness, real appreciation of the national currency c. International trade volume decline
d. Weak regional integration
e. Lack of mature and fully functional financial markets f. Difficulty of determining the equilibrium.
Disadvantages: a. High inflation rate. b. Loss of the confidence in national currency c. Loss of traditional markets for exports. d. National currency devaluation.
Distinction between Absorption and Marginal Costing These are two approaches of arriving at the cost of production or total profit for a specified period. The major difference
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Limitations of abc analysis
Marginal analysis finds to equalize the cost of producing one more item (marginal costs) with the revenue gained from selling one more item (marginal revenue).
Importance of Cost Classification Analysis of cost behaviour is significant to all organizations for effective management. It is since many organizations have a unique cost st
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