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Q. What is the purpose of the following figure?
Answer:
The use of the figure is to show the inflation convergence within the six original EMS members. The figure demonstrates the difference between domestic inflation and German inflation for six of the original EMS members. As of 1997 every national inflation rates were very close to the German levels.
Q. Countries do not in fact export the goods the H.O. theory predicts. Discuss. Answer: This statement isn't true that though one may find several cases where it seems to be
Critically evaluate the classical theory of international trade
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Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land. Answer: For the reason that good 2 uses land, a f
Q. Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it could choose to produce at which point in the diagram above? Sup
ABOUT THIS THEORY
why do nations impose trade barriers
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