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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 reforms and so on. Arguments against eliminating will stress more coordination and more credit lines and transparency and so on.
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Q. It is probable that trade based on external scale economies can leave a country worse off than it could have been without trade. Illustrate how this could happen. Answer:
Q. "The line distinguishing between external and internal goals can be fuzzy." Discuss. Answer: True For instance employment target for export industries when export growth m
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Explain Ohlin theory of International trade
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Q. Other things being equal, a rise in a country's terms of trade enhances its welfare. What could happen if we relax the ceteris paribus assumption, and allow for the law of dema
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
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