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Q. Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?
Answer: The limitation is little productivity increases most of the growth because of capital and labour inputs increase eventually leading to diminishing returns. The other weakness or limitation is the poor state of banking regulation in most of the Asian economies. The last reason is insufficient legal framework for dealing with companies in trouble.
Q. Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997? Answer: By initiating a new currency and init
different between her barter terms of trade and net barter terms of trade
The Concept of Comparative Advantage is explained below: To illustrate the concept of the comparative advantage, we take the instance of two equi-sized equi-endowment countries
Q. What are the three types of transactions between the residents of different countries? Answer: 1. Trades of services and goods for goods or services. 2
Q. Using the II - XX framework, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances. Answer: Starting at poi
Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p
Q. Discuss the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighboring European countries. Answer: Germany rumbles high interest
Is there is Few or many national currencies
tion..What is the range of gross barter terms of trade ?
Q. Discuss the effects of government deficits on the current account. Answer: A difficult and hard issue that during the Reagan administration the creation of twin deficits whe
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