Setting tone for subsequent generations of economists
Who was responsible for setting the tone for following generations of economists?
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For setting the tone for following generations of economists, explained by Paul Samuelson.
I NEED TO UNDERSTAND MORE ABOUT International product life cycle
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what are the key callenges to indian economic development
If a Hawaiian can produce 50 bushels of either potatoes or pineapples per acre, whereas an Idahoan manages just 3 bushels of pineapples or 30 bushels of potatoes per acre, then: (1) Idaho’s absolute drawbacks prevent gains from specialization and exchange. (2) T
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.
Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency
distinguish between autonomous transactions and accommodating transactions under balance of payments
Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.
‘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?’
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
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