Question
Asked Apr 20, 2019

explain IET(International Economic Transactions) cycles as a factor modifying the limits of state regulation.

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Expert Answer

Step 1

STEP 1

In economics, the term IET (International Economic Transactions) refers to the transfer of commodities, transfer of money, the rendering of services, and other investment between the citizens of one nation and citizens of another nations. Thus, IET cycle mainly concerned with fluctuations in the amount of goods and money transferred, services rendered, and investment levels among nations. However, fluctuations in the IET cycles changes the behavior of the government to deal with a particular situation.   

Step 2

STEP 2

Suppose that the IET cycle fluctuates, when the business cycle fluctuates i.e. the IET cycle changes when there is an expansion, peak, recession, and depression in the economy.

Consider the phrase of expansion and peak in which an economy has a large amount of availability of commodities, services, FDI inflows, and a higher investment opportunity; therefore, in this phrase there are high possibilities of capital transfers to other nations. ...

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