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Are international capital flows a problem?
Problem: Capital flows can have an adverse outcome onto:
a. Balance of payments (BoP): Shortly term capital inflows can be like:
• Foreign direct investment
• Short term loans
b. Exchange rates: In the demonstrate figure opposite FDI by British investors into Belize sees an increase into the demand for the Belize dollar resulting within an appreciation of which currency
c. Domestic prices and competitiveness inflows lead to an appreciation of the currency creating imports cheaper and also exports dearer. Unemployment might follow.
Problem 1: (a) Clearly distinguish between the theories of Comparative and Absolute advantage of trade (you are expected to use examples to illustrate your answer). (b) Acco
features of monopolistic competition and oligopoly
How is supply related to opportunity cost?
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Can economies grow of less developed countries by developing its secondary sector? Economies grow of less developed countries by developing its secondary sector because manufac
What is mean by stabilization policy? Taming the Business Cycle: To decrease the severity of recessions policy efforts undertaken are termed as stabilization policy. a
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elasticity concept occupies a central place in policy formulation. Explain in details.
How do currency speculators harm for Less Developed Countries? Private capital inflows can be short term and speculative. Speculators shift funds in a Less Developed Countries
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