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Q. "No country is abundant in everything." Discuss.
Answer: the idea of relative (country) factor abundance is (like factor intensities) a relative concept. When we recognize a country as being capital intensive, we signify that it has more capital per worker than does the other country. If one country has supplementary capital worker than another, it is an arithmetic impossibility that it also has more workers per unit capital.
Q. Using an equation, explain why governments prefer to avoid excessive current account surpluses. Answer: This pursue from the national income identity S = CA + I which says
Q. Presumably, since the United States is a large country in many of its international markets, a positive optimum tariff exists for this country. It follows thus that when any l
1. Species that have reached the extinction threshold and are on the verge of extinction – beluga whales, African elephants, mountain gorillas and the California condor might be cl
I am writing a paper on dependancy theory in Ghana and I am having trouble understanding the basics of peripheral capitalism.
Q. Using the diagram, show what happens to the composition of production (that is quantity of cloth per 1 unit of food) in Australia once trade is established between the two coun
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
how is exchange rate determined?
Q. Explain the purpose of the following figure. Show the effects of German unification on Germany's interest rate. Answer: The major purpose is to show that different i
Q. Based on the case study, answer the following question: Can currency boards make fixed exchange rates credible? Answer: No for the reason that is prohibited by law from a
Explanation with critical appraisal
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