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Singapore is a tourism based economy which comes into developed country it prefers a floating exchange rate because floating exchange rate is determine on the demand and supply of a particular country currency and laws of marketing mechanisms applies to it, thus it determine the capital investment from different nation based on the structure of the economy and not on authority guideliness. Under fixed exchange rate a currency foreign reserves falls down or increase because it is not based on law of demandand supply and harms an economy.
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Explain and discuss why Singapore as a more advanced but also small, trade-dependent economy, prefers a...
Part 1 Question 1. A. The US is Mexico’s most important trade partner. Explain at least...
Part 1 Question 1. A. The US is Mexico’s most important trade partner. Explain at least two possible pathways of how increasing US short-term interest rates can hurt Mexico’s economy. B. Similarly, explain two pathways through which the US decreasing short-term interest rates can help the Mexican economy. C. Explain the pros and cons of having a fixed exchange rate, a policy that Mexico introduced as part of its reform package in the years prior to the crisis. D. Explain...
Question 3 (10 Marks): Assume that Canada is a small open economy which uses a system...
Question 3 (10 Marks): Assume that Canada is a small open economy which uses a system of fixed exchange rates. The economy is in equilibrium when there is a sudden decrease in real money demand. Explain what will happen to the exchange rate, output, and the real interest rate in the short-run and in the long-run. Question 4 (10 Marks): Assume that Canada is a small open economy which uses a system of flexible exchange rates. The economy is in...
1) How would you characterize US trade policy since the Great Depression of the 1930s? Reinforce...
1) How would you characterize US trade policy since the Great Depression of the 1930s? Reinforce your argument with concrete examples of US trade policy. 2) GATT and its successor, the World Trade Organization, have established a set of rules for the commercial conduct of trading nations. Explain. 3) Discuss the economic-integration project known as the European Union in its different stages. Briefly characterize why we have come to refer to the EU as “multi-speed Europe.” 4) Discuss the key...
please explain part A and Part B separately. 1. Monetary Approach to Exchange Rates Suppose you...
please explain part A and Part B separately.
1. Monetary Approach to Exchange Rates Suppose you learn that the current exchange rate for the Japanese Yen is $1 = 120 yen. a. If you expect Japanese monetary growth to be a total of 25% larger over the next ten years than US monetary growth, what is your best guess as to the exchange rate ten years from now? What theory underlies your prediction? Explain why we apply this theory here...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (are) true? Table 1 Unit Labour Requirements T-shirt Brandy 4 hours 12 hours 6 hours 12 hours United States France A) The pretrade price ratio in France is 1 brandy - 2 T-shirts. B) The US pretrade price ratio is 1 brandy - 4 T-shirts. C) The US pretrade price ratio is 1 T-shirt = 1/3 brandy. D) The...
1. Why do you think that the Chinese historically pegged the value of the yuan to...
1. Why do you think that the Chinese historically pegged the value of the yuan to the U.S. dollar? 2. Why did the Chinese move to a managed-float system in 2005? 3. What are the benefits that China might gain by allowing the yuan to float freely against other major currencies such as the U.S. dollar and the euro? What are the risks? What do you think they should do? 4. Is there any evidence that the Chinese kept the...
Can someone explain the differences between managed float, crawling peg, and de facto peg please? 1....
Can someone explain the differences between managed float,
crawling peg, and de facto peg please?
1. 1994-2005: From a Peg Within a Small Band To a De Facto Peg China began modifying its exchange regime in earnest in 1986, when the government introduced a dual- exchange rate regime under which exporters sold their earnings in a regulated market separate from the inner China market (and thus allowing those exporters to receive more RMB for a unit of foreign exchange than...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
Corporate Finance For each 5 part question, please read the argument carefully and discuss why you...
Corporate Finance
For each 5 part question, please read the argument carefully and
discuss why you agree or disagree with it. You must assess the
argument itself rather than other information such as occupations
of speakers. True or False question.
part 1)
part 2)
part 3)
part 4)
part 5)
Your friend, Bob, says ” The current gold price is $8 per ounce and the one-year forward gold price is $9 per ounce. If you buy gold now and sell...
From the given case study, a) Discuss why Myanmar should or should not use protectionist policies...
From the given case study, a) Discuss why Myanmar should or should not use protectionist policies b) Choose a country that also has applied IIP in the past to evaluate its costs and benefits. Myanmar is working hard to make the difficult economic transition from its current status as a Least Developed Country to its once-held spot as one of the most developed Asian economies. Urged on by many international and domestic experts, sweeping liberalisation reforms are being pursued by...
Question 3 (10 Marks): Assume that Canada is a small open economy which uses a system of fixed exchange rates. The economy is in equilibrium when there is a sudden decrease in real money demand. Explain what will happen to the exchange rate, output, and the real interest rate in the short-run and in the long-run. Question 4 (10 Marks): Assume that Canada is a small open economy which uses a system of flexible exchange rates. The economy is in...
please explain part A and Part B separately.
1. Monetary Approach to Exchange Rates Suppose you learn that the current exchange rate for the Japanese Yen is $1 = 120 yen. a. If you expect Japanese monetary growth to be a total of 25% larger over the next ten years than US monetary growth, what is your best guess as to the exchange rate ten years from now? What theory underlies your prediction? Explain why we apply this theory here...
1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (are) true? Table 1 Unit Labour Requirements T-shirt Brandy 4 hours 12 hours 6 hours 12 hours United States France A) The pretrade price ratio in France is 1 brandy - 2 T-shirts. B) The US pretrade price ratio is 1 brandy - 4 T-shirts. C) The US pretrade price ratio is 1 T-shirt = 1/3 brandy. D) The...
Can someone explain the differences between managed float,
crawling peg, and de facto peg please?
1. 1994-2005: From a Peg Within a Small Band To a De Facto Peg China began modifying its exchange regime in earnest in 1986, when the government introduced a dual- exchange rate regime under which exporters sold their earnings in a regulated market separate from the inner China market (and thus allowing those exporters to receive more RMB for a unit of foreign exchange than...
Corporate Finance
For each 5 part question, please read the argument carefully and
discuss why you agree or disagree with it. You must assess the
argument itself rather than other information such as occupations
of speakers. True or False question.
part 1)
part 2)
part 3)
part 4)
part 5)
Your friend, Bob, says ” The current gold price is $8 per ounce and the one-year forward gold price is $9 per ounce. If you buy gold now and sell...
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