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Q. How much trade do currency unions create?
Answer: The major result is that currency unions promote trade. One study originate that on average two countries that are members of the same currency union trade three times as much with each other as countries that don't share a currency. Even if the euro were to increase trade within the euro zone by 50 percent the positive effect on people's welfare could be immense as another study has shown. Though some challenge the conclusion. Several claims the results wouldn't be duplicated when applied to large countries such as the members of the EU one more study found out that leaving a common currency area as Ireland did has not initiates a reduction in UK - Ireland trade.
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. Explain the advantage a and disadvantage of globalization? Advantages - 1. Economic growth 2. Lower cost 3. Improved availability of goods and services 4. Glob
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Canadian consumers have 50 dollar in come this is eual to the gross domestic product. they spand 35 dollars on comuser goods (25 on canadian goods annd 10 on imports) they save 8
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Difference between net barter terms of trade and gross barter terms of trade
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