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explain official reserve assets and its major componentsanswer official reserve assets are those financial assets which can be employed as
explain how a country can run an overall balance of payments deficit or surplusanswer a country can run a whole bop balance of payments deficit
define the balance of paymentsanswer the balance of payments that is abbreviated as bop can be defined as the statistical record of a
why would it be useful to examine a countryrsquos balance of payments dataanswer it would be helpful to observe a countryrsquos bop for at least
the united states has experienced continuous current account deficits as the early 1980s what do you think are the major causes for the deficits what
comment on the subsequent statement ldquosince the us imports more than it exports it is essential for the us to import capital from foreign
once capital markets are integrated it is hard for a country to maintain a fixed exchange rate explain why this may be soanswer one time capital
discuss the criteria for a lsquogoodrsquo international monetary systemanswer a good international monetary system must offeri sufficient liquidity
in an integrated world financial market a financial crisis in a country can be rapidly transmitted to other countries causing a global crisis what
criticism from the viewpoint of the proponents of the flexible exchange rate regimeeconomic agents can hedge exchange risk through forward contracts
criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regimeif exchange rates are fluctuating
list the benefits of the flexible exchange rate regimeanswer the benefits of the flexible exchange rate system includea automatic attainment of
explain how the special drawing rights sdr is constructed also discuss the circumstances under which the sdr was createdanswer sdr was made
what were the main objectives of the bretton woods systemanswer the major objectives of the bretton woods system are to acquire exchange rate
discuss the advantages and disadvantages of the gold standardanswer the benefits of the gold standard include i as the supply of gold is
explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standardanswer the adjustment
explain greshamrsquos lawanswer greshamrsquos law considers to the phenomenon that bad abundant money drives good scarce money out of circulation
what are multinational corporations mncs and what economic roles do they playa multinational corporation mnc can be described as a business firm
what considerations might limit the extent to which the theory of comparative advantage is realisticanswer the theory of relative advantage was
how is a countryrsquos economic well-being enhanced through free international trade in goods and servicesas per to david ricardo with free
discuss the three main trends which have prevailed in international business throughout the last two decadesthe 1980s brought a fast integration of
how is international financial management different from domestic financial managementanswer there are three main dimensions that set separately
why is it important to study international financial managementanswer we are now living in a world in which all the main economic functions
explain what will happen while the government imposes a minimum price that is below the market equilibrium price why is this truethe minimum price
how does price serve as a signal to resource ownerswhile consumers decide that a good or service is much more appealing than before demand rises