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Are the terms of trade (ToT) a problem?
Problem: The terms of trade (ToT) of a country fall when its import prices rise quicker than the price of its exports. Less Developed Country face a continuous deterioration of their ToT therefore a larger volume of exports has to be sold to finance a specified amount of imports.
Implications: Less Developed Countries are along with a comparative advantage within primary product are facing long term decline into export earnings through a specified volume of exports a trend made worse by increasing capacity through growth as well as the low PED for agricultural goods.
What are the limitations of comparative advantage? Limitations of comparative advantage: International trade needs wide specialisation. This can have drawbacks as given b
Speculating with Long Currency Strangle: A long currency strangle involves buying both a call option and a put option for a particular foreign currency with the same expiratio
What factory overhead expenses are involved?
Does economic growth automatically reduce poverty? Growth implies more goods and services are obtainable to satisfy more wants and requirements. But the benefits of growth may
MC=25+30Q-9Q^2 fixed cost=55 find total cost avarage cost variable cost
QUESTION 1 Learning has always been at the centre of improved performance in organisations. Taking an organisation of your choice, discuss how E-learning might be an efficient
greg and todd form a partnership and start a business in which each has a 50 percent share of the profit. after a year, the firm goes bankrupt and has debts of $20,000. greg has no
Disadvantages of globalisation
Staff time is generally the principal cost component of an IS project. Define five other areas where project costs could increase. Project costs also occur by: • Contract la
Suppose a firm’s budget were large enough to employ 100 units of either labor or capital, the cost of a unit of labor being the same as a unit of capital. The production function i
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