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Question:
(a) Illustrate the differences between inter and intra industry trade.
(b) Foreign Investors generally tend to adopt a two-stage process when evaluating countries as investment locations. First phase involve screening potential investors based on economic fundamentals. In the second phase, those countries which pass the first phase are evaluated based on the incentives they offer. Various studies have concluded that the most commonly used inducements are fiscal incentives. Enumerate and explain the specific objectives of fiscal incentives
Q. It can be demonstrated that any protectionist policy, which effectively shifts real resources to import competing sector or industry, will harm export industries or sectors. T
(a) Consider there are two countries (country 1 and country 2) with two goods (X and Y). Further, under the assumptions of the Ricardian model, country 1 specialise in goods X. De
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Explain how the money markets of two countries are linked through the foreign exchange market. Answer: The financial policy actions by the Fed affect the U.S. interest rate al
An International Regime for FDI and MNCs
How to calculate effective rate of protection
Q. Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets. Answer: For instance If the U.S price level increase
Q. "It is in the interest of each depositor to withdraw her money from a bank if all other depositors are doing the same, even when the bank's assets are sound." Discuss. As par
Suppose that industry 1 is monopolistically competitive, with a CES sub-utility function: U(c1,c2 ) = c1? + c?2 , 0 We let the marginal costs be denoted by c1(w,r), and the fixe
Critically evaluate the classical theory of international trade
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