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1. International trade:
(a) Explain the concept of comparative advantage between two countries (use a numerical example to illustrate, and do not use the identical example in the lecture note).
(b) Explain the advantages of free trade.
(c) What are the potential problems (disadvantages) associated with free trade?
It is often argued that firms compete only through diversifying their prices. Do you agree with this view? Justify your answer using examples / case studies form the Greek and/or t
curve
what is the criticism of opportunity cost
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International Capital Mobility is explained below: The case for the international capital mobility was most evidently articulated by MacDougal in 1960. He presented a framework
Q. Explain why one can write the demand for money as follows: Md = P L (R, Y) Answer: The collective money demand is proportional to the price level. Imagine that every prices
explain the product cycle theory in international trade
Q. "The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners.
Q. Discuss the differences between Absolute PPP and Relative PPP. Answer: Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies e
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