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Q. What are the reasons for the world as a whole running a substantial current account deficit?
Answer: This deficit improved sharply in the early 1980s and has remained high. The major reasons are statistical discrepancies of timing factors, national accounts while the major factor is the systematic misreporting of international interest income flows. Ever since the world interest rates raised sharply after 1980 the size of the world interest payment discrepancy increased with them. Additionally much of the world's merchant shipping fleet is registered in countries that don't report maritime freight earnings to the IMF which collects these data.
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 recogniz
Q. Who are the main actors in the international capital market? Answer: 1. Commercial banks. 2. Corporations. 3. Non-bank financial institution
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Hello, I rent an appartment in Brazil, a country known for its high inflation rates, but I live in Switzerland. Does this mean when I exchange Reais to Swiss Francs (in a +- consta
Q. Discuss the benefits and costs of joining a fixed-exchange area. Answer: Benefits generally gains from the stability of the area and reduced uncertainty. The compete
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