--%>
Assignment Help - homework help

Deviations from purchasing power parity

Explain about deviations from purchasing power parity for countries competitive positions within the world market.

E

Expert

Verified

In case changes within the exchange rate suit the PPP, competitive positions of countries will remain unchanged following the exchange rate changes. On the other hand, changes of exchange rate will have an effect over the comparative competitiveness of the countries. In case currency of the country improves (depreciates) by more rather than is warranted by PPP, this will hurt (strengthen) the competitive position of the country in world market.

   Related Questions in Financial Accounting

  • Q : Issuing dual currency bonds What

    What borrower must consider before issuing the dual currency bonds?

    		•
  • Q : Objectives of Bretton Woods’s system

    State main objectives of Bretton Woods’s system?

    		•
  • Q : Case study of a local public utility

    The local public utilities commission has been charged with inspecting and reporting utility problems in the area. They have three electrical inspectors and two gas inspectors, each available for 40 hours , to analyze structures in their respective areas of expertise.

    		•
  • Q : Financial hedging of firm’s operating

    List disadvantages and advantages of the financial hedging of firm’s operating exposure through the operational hedges (like relocating the manufacturing site)?

    		•
  • Q : International portfolio for buying

    Why it is easier for an investor willing to diversify his portfolio internationally for buying depository receipts instead of actual shares of the company?

    		•
  • Q : Architectural Symbolism-house-style

    Wriet a report on the term Architectural Symbolism:a study of house-style meanings ?

    		•
  • Q : Measures to avoid financial crisis In

    In integrated world financial market, financial crisis in country is rapidly transmitted to the other countries, resulting in the global crisis. State some of the measures would you propose in order to avoid the recurrence of the Asia-type crisis.

    		•
  • Q : Define Factitious Assets Factitious

    Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is

    		•
  • Q : Article on Valuation of assets Write an

    Write an article on Valuation of assets serves for both buyers and sellers of goods and services.

    		•
  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

    		•