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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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review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade
opportunity cost version is an improvement over the classical theory of international trade?comment
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Q. Explain why the exchange rate model based on PPP is a long-run theory. Answer: PPP theory is a financial approach to the exchange rate. It is a long-run theory for
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