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Q. Explain the advantage a and disadvantage of globalization?
Advantages -
1. Economic growth
2. Lower cost
3. Improved availability of goods and services
4. Global prosperity and flow of productive resources
5. Incentive forresearch and adoption of innovations
6. Raise cheaper loans
Disadvantages-
1. Unavoidable risks like tradecycles
2. Undue political , economic and cultural risks
3. Problem of heavy debtedness
Q. Explain why large interest rate differences would be strong evidence of unrealized gains from trade. Answer: The difference between offshore and onshore interest rates on
Q. How did the international monetary system influence macroeconomic policy-making and performance during the gold standard era (1870 - 1914)? Answer: London was the hub of t
how is exchange rate determined?
Discuss the exceptional supply curve
The Arguments for Flexible Exchange Rates
Q. To answer the following question, please refer to the figure below. Concentrating only at the lower left quadrant, discuss the relationship between the U.S. real money supply a
tion..What is the range of gross barter terms of trade ?
Q. Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows
Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: A. U.S. money supply. B.
explain the law of reciprocal demand trade theory of marshall
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