If a developing country need foreign capital inflows, management expertise and technology, how can it encourage foreign investors while at the same time protect itself against capital flight and banking system collapse, as happened during the Asian financial crisis?

Q: Can companies take advantage of favourable exchange or tax rates to make purchases in different…

A: Meaning of Foreign Exchange Rate: The term foreign exchange rate refers to the situation where…

Q: A lesson of the "impossible trinity" is that, if a country wants to have both exchange rate…

A: "Exchange rate refers to the value of one currency in terms of another." In other words, the…

Q: Suppose that a small open economy initially is in a situation with balanced trade at the prevailing…

A: When there is an increase in the real interest rates, people cut their expenditures and people would…

Q: Suppose that several large foreign countries decrease government spending, leading to an increase in…

A: In a small economy, if several large foreign countries decrease government spending, leading to an…

Q: The balance of payments of a country is based on the difference between the fund inflows and…

A: When talking about the balance of payment account, it is the account of a country to make record of…

Q: # Foreign investment are recorded in the capital account of Balance of payment. True/False

A: Balance of payment refers to the record of the international transactions that the domestic country…

Q: Which of the following are not a part of capital Account of Balance of Payment a. Foreign Loans b.…

A: As the name implies, a country's balance of payments (BOP) shows how much money has flowed from one…

Q: What can international business people do to protect their companies from increasing inflation and a…

A: International business have to be very careful in making cost and business expansion decisions,when…

Q: With regard to international borrowing, what are main differences between official channels and…

A: When the government, household, or any corporation of one country takes a loan or debt from the…

Q: State reasons (with full explanations) how devaluation and depreciation can cure current account…

A: The current account deficit is the situation of value of import of goods and services is greater…

Q: Explain the relationship among saving, investment,and net capital outflow.

A: Savings equals domestic investment plus the net capital outflow. The savings by a person helps in…

Q: If a countrys official financial account is equal to and its unofficial financial account is equal…

A: Financial accounts are one of the components of the balance of payment accounts that covers all the…

Q: The multinational organization that aims to promote world economic growth by fostering financial…

A: Financial stability means balancing the economic activities, market risks and managing the flow of…

Q: Discuss the last sentence, addressing the main problems at the Egyptian economy, and Egypt…

A: The Egyptian government should zero in on four central points of contention to get its economy…

Q: Give three (3) reasons that support that EXIM (Export-Import) Banks contributes to the increased…

A: Exim Banks are government or semi-government organizations that ensure the protection and progress…

Q: Report on the most recent three countries that the IMF has given emergency loans to in response to a…

A: IMF is the international financial institution that provides loans to needy countries in their…

Q: Based on your own observation, give the possible sources of political risk in the Philippines…

A: Political risk - Not that much Although Filipino politics is a bit more polarized than many of our…

Q: When a country has a net financial capital flow, its_ O A) capital inflows are greater than capital…

A: For a given period, net cash flow is the difference between money flowing in and money going out of…

Q: Part 1 - What kinds of specific actions has the IMF taken in order to address economic or financial…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing…

A: Here, it is required to explain if the provided statement is True or False.

Q: Compare and contrast currency crises models

A: Ever since the 1990's there have been many instances of currency crises across the globe. This…

Q: How would a new gold standard contribute to macroeconomic stability in emerging economies with…

A: A gold system is the monetary standard. The value of a country's currency or paper money is tightly…

Q: Foreign direct investment tends to be inexpensive, but it gives companies very little control of…

A: A acquisition of a stake in a local business by a corporation or individual based in another country…

Q: Show the effects of an increase in the world interest rate on the market for loanable funds and the…

A: The market of loanable funds is base in the concept that the market interest rate is determined by…

Q: What is an international financial crisis, and what are the two main causes?

A: A financial crisis is an economic term. A financial crisis is a situation where there is a sharp…

Q: Why would the value of the USD fall against the JPY if the political risk in the US rose relative to…

A: Exchange rate: It can be defined as the rate at which the value of the domestic countries currency…

Q: When a group of countries form a Common Currency (such as the Euro), which of the following is NOT…

A: Common currency like Euro has its own advantages and disadvantages. There are a large number of…

Q: State whether each of the following events involves a financial inflow to or outflow from the Kenyan…

A: Financial flow refers to the flow of money in any form from one place to another. It could be in the…

Q: how cashless economy make the international transaction more accessible

A: When transactions in the economy are not based upon money notes, coins, or other physical forms of…

Q: Financial aid packages provided by the IMF to countries in a currency crisis are often tied to…

A: Financial aid packages provided by the IMF to countries in a currency crisis are often tied to…

Q: How can emerging market economies avoid theproblems of currency mismatch

A: Answer - Emerging market economies avoid the problem of currency mismatch in many ways :- 1.By…

Q: If a country is a big exporter, is it more exposed to global financial crises?

A: Global financial crisis: - it refers to the state of unrest in the global financial market like a…

Q: It was not a premise for the development of the International Financial System: Select one: a.…

A: International Financial Institutions (IFIs) were established by groups of countries to encourage…

Q: A higher level of GDI relative to the country's absorption level contributes to a higher current…

A: In economics, GDI stands for Gender Development Index, which explains the expansion of ability of…

Q: Interest rate parity is ensured by Select one: a. The government b. Arbitrage c. None of the above…

A: Interest Rate is the rate which the banks keep on their loans that they give out. It is used to…

Q: Describe three means by which a current account deficit in a developing country is financed. (By…

A: Concept Current account deficit is measuring a country's commerce in which Its imports outnumber its…

Q: Describe the sources of supply and demand in the market for loanable funds and the market for…

A: Startiing from the Adamsmith a vast litrature of explaining the nature & determining the rate of…