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answers should cover point related to all the issues related with international 1.exchange rate 2.balanceof payement3.trade agreement
should be of graduate level only.

2006-10-17 17:12:22 · 2 answers · asked by hitu 1 in Social Science Economics

2 answers

so what do you want for your homework that you don't already know? Exchange rates.... they float, unless governments/central banks interfere with them there are no problems, they're like stockmarkets, they move up and down in a "perfect market".

Balance of payments - see my other answer on this. The problem is when a current account dficit is persistent in a small country and the debts on capital account become hard to service.

Trade agreement -- do you mean like EFTA and NAFTA? Trade happens beautifully without agreements, the problem is that some governments love to regulate things and restrict imports by means other than a free floating exchange rate. Then you get govts making agreements to cut or eliminate those restrictions with this or that group of friendly countries.

2006-10-20 02:02:19 · answer #1 · answered by MBK 7 · 0 0

faith, it truly is, a willingness to declare to "believe" that it is irrational and unprovable, is the reason of the topic matters in the region, and the further non secular the man (on both area) the further likely they are to be an element of the project. on the top of the day, if one team thinks that the international is managed by technique of the invisible unicorn and those who do not position self assurance in him are going to hell and the different team thinks the international is managed by technique of the invisible leprechaun and picture that the different adult males are going to hell, there'll be inherent differences. the answer is to augment up and get over the man fairy tale it truly is faith.

2016-12-04 22:57:16 · answer #2 · answered by Anonymous · 0 0

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