Under a system of floating exchange rates, explain how a Caribbean government uses one (1) economic policy to influence its country’s trade balance.
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Under a system of floating exchange rates, explain how a Caribbean government uses one (1) economic policy to influence its country’s trade balance.
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- Under a system of fixed exchange rates, explain how a Caribbean government uses one (1) economic policy to influence its country’s trade balance.Discuss how government intervention in the foreign exchange market can effect economic conditions of a countryUnder a system of fixed exchange rates, explain how a Caribbean government uses fiscal policies to influence its country’s trade balance with examples or diagrams.
- Under a system of fixed exchange rates, explain how a Caribbean government uses two(2) economic policies to influence its country’s trade balance. some detailExplain why many industrialized countries do not often intervene in the foreign exchange marketConsider the appreciation of a currency. What effects might this have on international companies exporting overseas? What actions could companies take to minimize these effects
- Suppose for a given country the demand for imports and exports can be expressed as shown below. Calculate the trade balance if E = 200 where E is the exchange ratio. Be sure to include the sign if you come up with a negative number. IM = 1,200 + 0.05E EX = 700 - 0.08EWhat are automatic exchange's main benefits and challenges for the Caribbean?d) What policy would help the developing country maintain its fixed exchange rate?
- If purchasing power parity between two countries were to hold, does this mean that the law of one price must necessarily hold for each good? Explain why or why not and provide an example.which group may be hurt by an appreciated us dollar to the mexican peso?Explain the two different concepts of purchasing power parity PPP and how they relate to the Law of one price. explain the balassa-samuelson Effect and its implications for PPP