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Consider the model of industry protection of Grossman and Helpman. There are two industries A and B, each producing good X and Y respectively. All other things being equal, the demand for good X is inelastic while the demand for good Y is elastic (or more simply, the demand for good Y is more elastic than the demand for good X). The country where these two industries are located is considering to open up its border to foreign companies that will bring competition and reduce the domestic prices of goods X and Y. In this context, and using the G-H model, explain which industry will seek protection against international competition and why. Do not write more than two paragraphs.
privatization can always decentralise economic power. critically discuss
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One of these is deregulator or privatization of public enterprises or utilities. Deregulation is a world wide phenomenon. But experience of power failure in California and Mumbai r
The international monetary fund and the World Bank are the main lending financial institutions that give assistance to developing nations in the restoration of their economy. Wh
Consider a case, if an insurance company merges with a bank. We know that insurance company bears risk for insurers. Suppose, after merger, bank gets in some trouble for reasons ot
U=4X+G where X is private spending and G is public spending. what is the marginal rate of substitution between public and private
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