--%>
Assignment Help - homework help

Inflow of foreign currency

Determine the factors accountable for inflow of foreign currency?

Answer:

a) Foreigners buying home country services and goods via exports.
b) Foreigners investment in home country via joint ventures and via financial market operation.
c) Foreign currencies flow into economy due to the currency dealers and speculators

   Related Questions in International Economics

  • Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii

    		•
  • Q : Positive Balance of Payments I have a

    I have a problem with the satement “Things will look excellent for the US if we could just get to where we are consistently executing a positive Balance of Payments.” Can someone in short comment on this statement?  

    		•
  • Q : Define fixed exchange rate Fixed

    Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.

    		•
  • Q : Explain all the approaches of Paul

    Explain all the approaches of Paul Samuelson.

    		•
  • Q : What is Fixed exchange rate system

    Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.

    		•
  • Q : Define foreign exchange rate Foreign

    Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.

    		•
  • Q : What does a deficit in balance of trade

    Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.

    		•
  • Q : Visible and invisible item Describe

    Describe which of the following is a visible and which is invisible item in Balance of payments. (a) Export of jute product (b) Software services exports. Answer:

    Q : Components of capital account of

    Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.

    		•
  • Q : How is the exchange rate influenced by

    ‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’

    		•