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Q. Based on the case study, answer the following question: Can currency boards make fixed exchange rates credible?
Answer: No for the reason that is prohibited by law from acquiring any domestic assets thus all the currency it issues automatically is fully backed by foreign reserves. as well countries that adopt currency board do it for the reason that one of the mayor advantage aside from the constrain it places on fiscal policy central bank is able to never run out of foreign exchange reserves in the face of a speculative attack on the exchange rate. Thus the currency board cannot fix exchange rates.
explain the product cycle theory in international trade
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discus how every economy is essentially part of the international economy
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1. International trade: (a) Explain the concept of comparative advantage between two countries (use a numerical example to illustrate, and do not use the identical example in th
describe this thery in detail?
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