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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 elsewhere in the world. Must provide examples like the Thai crisis which provoked another crisis in South Korea a much larger economy some 7,000 miles away Or the Russian crisis sparking huge speculation against the Brazil's real.
Explain Purchasing Power Parity. Answer: PPP ( ) states that the exchange rate between two countries' currencies equals the ratio of the countries' price levels. A decr
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
Explain Integration of International Trade and Foreign Investment
The Arguments for Flexible Exchange Rates
WHAT ARE THE METHODS OF FDI
Critically evaluate the theory and outline the necessary assumptions for the theory to hold in it''s purest form
Q. Explain the Law of One Price. Give an example. Answer: The law of one price affirms that in competitive markets free of transportation costs and trade barriers ide
Explain Theoretical and methodological aspects of international economic relations
Why would interest rate parity hold better than Purchasing power parity overtime?
Present and explain the Fundamental Equation of the Monetary Approach. Answer: Suppose E $ /E = P US /P E and that domestic price levels depend on domestic money demands and
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