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Q. It is claimed that the persistence of protectionism is often the result of the fact that those who lose from trade are usually a much more informed, cohesive and motivated a group than those who gain. Give a specific example from "real life" that supports this claim.
Answer: The shift of shipbuilding comparative benefit in shipbuilding away from the U.S. has basis economic damage to trained shipbuilders, and to owners of shipyards, as well as to peripheral businesses located near such shipyards. These groups as well as their Congressional representatives will be extremely much aware of the damage being done. The gainers would be those who pay rather lower shipping charges, or lower retail prices caused by the use of cheaper (foreign built) ships. Because shipping is usually a very small component of total retail cost this gain will hardly be noticeable by any one single group in the economy.
Q. Should the IMF be abolished? Discuss. Answer: Arguments for eliminating the IMF must mention moral hazard and insistence on high interest rates and hasty structural
I need to use the gravity model to analyse the effects of the euro on tradeflows. is this something u can do?
Q. Explain how a rise in real income affects aggregate demand. Answer: An increase in domestic real income Y leads to a rise in disposable income Yd. This increases
Q. What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets? Answer: Will increase because of fear that foreign deposits in the United States wi
Q. Present the case against floating exchange rates. Answer: 1.The discipline obligatory on individual countries by a fixed rate would be lost. 2. Undermine specu
Q. Explain why the dollar of the United States became the postwar world's key currency. Answer: 1. The untimely convertibility of the U.S dollar in 1945. 2.
tion..What is the range of gross barter terms of trade ?
The IMC strives to understanding patients' needs before understanding the markets. When patients arrive at IMC, they become part of a long tradition of distinguished health care. T
Assume that Deborah Electronics expects a delivery of Fujitsu laptops in a month from a Japanese supplier. Each laptop sells at $1000 in a retail market whereas the import cost is
Q. Explain the following figure: Answer: The figure depict the effect of a permanent increase in the money supply starting from full employment equilibrium. Subsequent to the i
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