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1. Explain why many Asian countries set up Export Processing Zones and why China set up Special Economic Zones. What are the similarities and differences between EPZs and SEZs?
2. FDI:
(a) How do you define foreign direct investment (FDI)? Explain this concept.
(b) What are the typical motives for FDI from the perspectives of the host countries and MNCs respectively? Please discuss.
(c) What are typical modes (organizational forms) of FDI in China and what are their advantages and disadvantages? Explain.
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Q. Explain the Asian financial crisis as it unfolds beginning with the valuation of the Thai currency in July 1997, followed by the Malaysian, South Korean and Indonesian crises.
Q. What do you think about dollarization? Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage a
Q. What are the factors affecting the demand for foreign currency? Answer: Three factors that affect the demand for foreign currency are risk, expected return, and liquidity.
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