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Q. Explain why the European Union's current combination of rapid capital migration with limited labor migration may actually raise the cost of adjusting to product market shocks without exchange rate change.
Answer: If the Netherlands undergo an unfavourable shift in output demand Dutch capital is able to flee abroad leaving even more unemployed Dutch workers behind than in the case of government regulations that were to hinder the movement of capital outside the Netherlands. Harsh and persistent regional depressions could result worsened by the probability that the relatively few workers who did successfully emigrate would be precisely those who are most reliable, skilled, and enterprising. This is another instance of the theory of the second best.
Importance of International Trades : The basis of international trade is to be found in the diversity of economic resources in different countries. All countries have not been end
discus how every economy is essentially part of the international economy
Q. Discuss the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighboring European countries. Answer: Germany rumbles high interest
Q. Explain the phenomenon of capital flight. Answer: The reserve defeat accompanying a devaluation scare is habitually labeled capital flight for the reason that the assoc
Q. Who are the major participants in the foreign exchange market? Answer: 1. Commercial banks 2. Corporations 3. Nonblank financial institutions 4. Central banks
discuss the central economic problem facing this group of survivors.
#question.what is the baises for international trade.
It is argued that a tarriff may help promote employment in a single industry, but is not likely to help employment in general
The Republic of Ireland has had colossal economic problems for many years. On the other hand, in the last two decade, the nation has experienced a thriving economy and has becom
Q. It is argued that the United States could be foolish to maintain a free-trade stance in a world in which all other countries exploit prisoner or child labor, or are protectioni
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