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Q. Explain the advantage a and disadvantage of globalization?
Advantages -
1. Economic growth
2. Lower cost
3. Improved availability of goods and services
4. Global prosperity and flow of productive resources
5. Incentive forresearch and adoption of innovations
6. Raise cheaper loans
Disadvantages-
1. Unavoidable risks like tradecycles
2. Undue political , economic and cultural risks
3. Problem of heavy debtedness
Q. Using a figure, show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run. Answer: A t
critically evaluate Adam Smith''s theory of absolute advantage,outlining the assumptions necessary for the theory to hold in its purest form.what are the criticisms of this theory
een subject to a discrimination complaint as a result of their recent recruitment campaign- They told the recruitment agency that they were looking for ‘young women with flair'' to
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Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency? Answer: A vehicle currency is one specifically widely used to denominate inter
Problem: a) Write down and explain the Black-Scholes European call option pricing formula. Discuss how call prices it delivers change with each of the inputs to the calculatio
Q. One of the usually used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the similar in two countries, th
economic theories to explain free traden..
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