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1. Explain why many Asian countries set up Export Processing Zones and why China set up Special Economic Zones. What are the similarities and differences between EPZs and SEZs?
2. FDI:
(a) How do you define foreign direct investment (FDI)? Explain this concept.
(b) What are the typical motives for FDI from the perspectives of the host countries and MNCs respectively? Please discuss.
(c) What are typical modes (organizational forms) of FDI in China and what are their advantages and disadvantages? Explain.
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Annotated Bibliography
Q. Using a figure illustrate the simultaneous equilibrium of the foreign exchange and domestic money markets when the exchange rate is fixed at E0 and is expected to remain fixed a
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Q. Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: A. U.S. money supply. B.
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