Regional financial institutions, Microeconomics

Assignment Help:

REGIONAL FINANCIAL INSTITUTIONS:

You have read about regional international trading blocs in Block 5 Course MEC 007 International Trade and Finance. This unit deals with regional financial institutions which are institutions working in a group of nations. Regional financial institutions are institutions that have financial dealings in a certain region rather than at a global level. But we explore in a greater part of the unit how a group of nations comes together to engage in foreign trade and international financial dealings among each other using arrangements that may be thought to be substitutes for the fixed exchange rate system.

We will explain the theory of customs unions in the next section. These unions are basically arrangements where a group of nations do away with tariff and non-tariff barriers among themselves but apply these to countries outside the group. The subsequent section deals with currency unions and optimum currency areas. These are areas where the member countries agree to share a common currency. The
monetary or currency union is an extension of the fixed exchange rate that seeks to avoid the instability associated with the fixed exchange rate system. The section after that deals with regional financial institutions, which are financial institutions that

lend at the level of a few nations, or one continent. An example is the Asian Development Bank (ADB). The final section discusses the evolution of Europe in the post-World War II period from being a customs union to moving towards a monetary union with a common currency. 

 


Related Discussions:- Regional financial institutions

Inverse market demand curve, Problem: i) The  inverse market demand cur...

Problem: i) The  inverse market demand curve for a Stackelberg leader and follower is given by  P = 10  - Q. If each has  a marginal cost of $4, what will be the equilibrium qu

Applyimg supply/denabde due to illness and hospital :), If a 10% increase ...

If a 10% increase in the price of computers leads to a 20% reduction in the quantity demanded, what is the coefficient of demand elasticity? 2. A local government wants to increase

Economies of scale, what are the limitations of economies of scale?

what are the limitations of economies of scale?

Economics, Assume that a persion lives for three equal periods: Youth, Earl...

Assume that a persion lives for three equal periods: Youth, Early Adulthood and Late Adulthood. The person dies after later adulthood period ends. If one invests $200 in educatio

Supply, what happen when a supply shift to the right on a graph

what happen when a supply shift to the right on a graph

Market structure, how do oligopolistic market and monopolistic competition ...

how do oligopolistic market and monopolistic competition react to change in demand and supply ?

Use of resources - international monetary fund, Use of Resources - INTERNAT...

Use of Resources - INTERNATIONAL MONETARY FUND: IMF provides temporary assistance to member-countries to tide over balance of payments deficits. When the country requires fore

Understanding the labor market using supply and demand, The market for labo...

The market for labor can be studied use a supply and demand framework.  The demand for labor is from employers who use labor to produce goods and services.  The supply of labor is

Managerial theories of firm., Implications of Williams model of managerial ...

Implications of Williams model of managerial discretion in Nepalese industries

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd