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Q. Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?
Answer: The limitation is little productivity increases most of the growth because of capital and labour inputs increase eventually leading to diminishing returns. The other weakness or limitation is the poor state of banking regulation in most of the Asian economies. The last reason is insufficient legal framework for dealing with companies in trouble.
Q. Explain why the distinction between debt and equity finance is useful in analyzing the response of developing countries to unforeseen events such as recession or terms of trade
Discuss about the Nature of Financial Crises
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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Q. Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate. Answer: The major points are: A raise in the European money supply will re
Q. What are the predictions for the long run of the Monetary Approach? Answer: Money supplies- Known the equations E $/E = P US /P E P US = M S US /L(R $
review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade
Q. Explain the difficulties in naming the new European currency. Answer: Amongst the reasons: Maintenance the name ECU would be misleading the ECU depreciated sharply ag
As the world seeks to find alternative means to produce clean power, fuel cells emerge as a promising source of power generation. Depending on their type, fuel cells can be utilize
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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