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Q. Explain the causes of the U.S. Savings and Loans crisis of the early 1980s.
Answer: On the one hand permitting S&L to make a lot riskier loans for instance loans on commercial real estate. On the other hand insufficient examination for the new situation and depositors together with increase in interest rates due to increased inflation rate.
Q. What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets? Answer: Will increase because of fear that foreign deposits in the United States wi
Q. Suppose Australia, a land (K)-abundant country and Sri-Lanka, a labor(L)- abundant country both produce labor and land intensive goods with the similar technology. Following t
what is the nature of the proximity-concentration that firms have to deal with then making decision regarding foreign direct investment?
Q. If a scale economy is the dominant technological factor establishing or defining comparative advantage, then the underlying facts explaining why a particular country dominates
what is opportunity cost thory explain it with example
Q. It is claimed that the persistence of protectionism is often the result of the fact that those who lose from trade are usually a much more informed, cohesive and motivated a gr
Q. "A monetary policy is not a policy tool under fixed exchange rates." Discuss. Answer: It is True Under fixed exchange rates domestic asset transactions by the centr
Q. Explain why the European Union's current combination of rapid capital migration with limited labor migration may actually raise the cost of adjusting to product market shocks wi
• What is the motive for expanding into foreign markets, and more specifically why the chosen county. • Analysis of at least three alternative international expansion strategies
review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade
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