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Q: Explain why many industrialized countries do not often intervene in the foreign exchange market

A: The industrialized countries are countries that have a fully developed system of industries i.e. has…

Q: Consider the following: Country Jeans Corn (Pairs per hour of labor) (Bushels per hour of labor)…

A: Firms are producing goods and services which it has comparative advantage; price is set the range…

Q: What are five ways in which Zambia can improve unfavourable balance of Trade

A: The objective of the question is to identify five strategies that Zambia can implement to improve…

Q: What is the current account?

A: The formula for calculating current account is given below. Current account=Balance of Trade +…

Q: d the invisible balance when the current account balance of payment are 1600 and the trade balance…

A: As per the question, here,Current account balance of payment are = 1600 now, Trade balance are…

Q: Find the invisible balance when the current account balance of payment are 1600 and the trade…

A: As per the question, Current account balance of payment are = 1600 Trade balance are valued as =…

Q: Find the current account balance of payment if the trade balance are 444 and the invisible balance…

A: As per the question, Trade balance are = 444 Invisible balance = 180 Current account balance of…

Q: Consider an economy with zero capital mobility. Will exchange rate overshooting still occur? What…

A: In financial matters, overshooting, otherwise called the swapping scale overshooting speculation, is…

Q: Q: Refer to the graph below. Suppose that the world supply curve is above SWO. What is the balance…

A: The graph shows the domestic supply and demand for goods, with the world supply curve being above…

Q: In which of the following circumstances should a small open economy run a trade deficit? Select all…

A: An economy that's hospitable trade and to flows of capital across its borders which is little…

Q: Find the current account balance when the trade balance are 2,81,000 and the invisible balance are…

A: Generally in the given question Trade balance are given as = 281000 Invisible balance = 391000…

Q: Which of the following statements is NOT CORRECT regarding a country's current account? Higher…

A: Imports are the quantity of goods and services purchased by the home country from the foreign…

Q: A country with negative net capital outflow has a trade surplus. true  false

A: Trade surplus means excess of export over Import of goods and services . Trade surplus indicates…

Q: There are questions related to International Factor Movements and Multinational Enterprises 1. Is…

A: Trade is a term used for exchange, which can be voluntary in nature where both the parties involved…

Q: Capital flight is the sudden large drop in demand for domestic assets. Explain the following: if we…

A: Capital flight is the flow of domestic financial resources to foreign countries. The capital flight…

Q: In the balance of payments, what does the net capital flow indicate, and how will a current account…

A: Introduction The balance of payment is a systematic record of economic transactions of the residents…

Q: Foreign investment is counted under capital account of balance of payments.  True/False

A: In international macroeconomics the capital account of the balance of payment is account which keeps…

Q: Describe, with detailed explanations, the four components of the current account of the balance of…

A: The current account is used to measure the inflow and outflow of goods, investment incomes, transfer…

Q: In the balance of payments statement, a current account surplus will be matched by a    capital and…

A: The Balance of Payment record the transactions in services, goods, and assets between residents of a…

Q: Explain briefly what international investment law does. Why is it important? Is it a good or bad…

A: Investing means putting money into something with the prospect of a future benefit or return. To put…

Q: Define favourable and non favorable balance of trade

A: When exports are greater than imports,it would be known as favourable balance of trade.

Q: Discuss why a host country might promote or restrict foreign direct investment.

A: Foreign direct investment (FDI) is a kind of cross-border investment in which a stake in and…

Q: Which of the following statements is NOT CORRECT regarding a country's current account? Higher…

A: The current account is a summary of a country's economic transactions with the rest of the world,…

Q: Effect of Foreign Interest Rates - Peter Thiel. If foreign interest rates rise, this will cause the…

A: If foreign interest rates rise, this will cause the net capital outflow to increase. Because,…

Q: Under a system of fixed exchange rates, explain how a Caribbean government uses fiscal policies to…

A: Fixed exchange rate: A country’s exchange rate signifies the total amount of domestic currency…

Q: What are the automatic adjustment mechanisms operate to correct a deficit in the balance of payments…

A: Fixed Exchange Rate refers to the regime imposed by the reserve bank or by the central government…

Q: The following balance of payments data is for the economy of Augusta: Foreign investment in Augusta…

A: The balance of trade, commercial balance, or net exports, is the difference between the monetary…

Q: On what two factors does the return on a foreign investment depend?

A: Foreign investment can be referred as the investment on the asset and domestic firm of another…

Q: oreign countries start to subsidize investment by instituting an investment tax credit. a) What…

A: A tax credit is an incentive being offered which in turn allows the taxpayers for reducing the tax…

Q: Fully examine the circular flow diagram of an open economy. Apply the circular flow diagram to a…

A: The circular flow diagram is a visual illustration of the flow of money,  products and services…

Q: and

A: With the increase in world price of wheat, the total revenue of exporting country will increase,…

Q: How does a depreciation or devaluation of a nation’s currency operate to eliminate or reduce a…

A: Introduction  A country devalues ​​its currency to combat a trade imbalance, which means that an…

Q: The impacts of the trade war regarding the determination of foreign exchange rates based on supply…

A: A trade war happens when one country imposes trade barriers in another country's imports and…

Q: Discuss the role of foreign exchange in international trade.

A: The measure which depicts the value of one currency in terms of another currency is known as the…

Q: A Current account deficit often raises the opposition of protectionists who think that a current…

A: There are other points of disagreement, including the definition of a current account deficit or…

Q: Q.1.2 A deficit on the current account of a country's balance of payments can be financed by a…

A: The balance of payments (BOP), sometimes known as the balance of international payments, is a…

Q: Relate your answer to the International parity condition: Why the McDonald’s Big Mac is priced…

A: Introduction An informal way to compare the purchasing power parity of two currencies is through the…

Q: Global Exports prefers payments in advance, while Worldly Imports dislikes making payments in…

A: Answer -

Q: How can the United States improve trade deficit? Give three solutions.

A:

Q: Using the information in the following table on Mexico’s 1996 international transactions to answer…

A: Balance of trade is defined as the difference between the value of exported and imported goods and…

Q: Explain why an increase in national saving (S) relative to investment (I) may lead to a current…

A: In economics, we assume the level of savings equals the level of investment. Investment needs to be…

Q: Discuss this statement : " Because each nation's balance of payments equals zero , it follows that…

A: The goal of a balance of payments deficit or surplus is to comprehend the debt or rest in a…

Q: What are the major components of trade balance

A: Trade balance, or balance of trade, is the term used to calculate the difference between a country's…