--%>
Assignment Help - homework help

Fixed or managed exchange rate

Question:

A country with a fixed or managed exchange rate would consider i.___________________ its currency to gain competitive advantage vis-à-vis its trade partners.
ii. Briefly Explain?

Answer:

The country will devalue its currency. Devaluation will lead to lowering of cost of the export goods of the country while increasing the cost of the imports. This will boost export demand and curtail imports demand. Consequently, the trade balance will improve.

   Related Questions in Business Economics

  • Q : Comparative advantage in production I

    I have a problem in economics on Comparative advantage in production. Please help me in the following question. The oranges are grown in Florida and potatoes are grown in Maine mainly since: (i) orange-grower’s in Maine have not lobbied effectiv

    		•
  • Q : Define Direct and inverse relationships

    Define Direct and inverse relationships?

    		•
  • Q : Competition and the Invisible Hand

    Elucidate: Competition and the “Invisible Hand”?

    		•
  • Q : Millions of economic resources tend to

    What explains why millions of economic resources tend to get arranged logically and productively rather than haphazard and unproductively?

    		•
  • Q : Describe two kinds of efficiency Full

    Describe two kinds of efficiency Full production imply?

    		•
  • Q : How do you account for the dominant

    How do you account for the dominant role of corporations in the U.S. economy?

    		•
  • Q : Regression Your firm is worried about

    Your firm is worried about being sued for gender discrimination. There is a growing perception that males are being paid more than females in your department. Using the data in the SALARY tab in the Excel file provided, please complete the following using a = .05 a). Do the men appear to earn mo

    		•
  • Q : Allocating resources and distribute

    The market system tends to mainly beneficial allocating resources and distributes goods while: (1) the distributions of wealth and resource ownership are extensively perceived as equitable. (2) markets are extremely competitive. (3) goods are rival an

    		•
  • Q : Meaning of Modigliani-Miller Briefly

    Briefly describe the meaning of Modigliani- Miller (M and M) approach?

    		•
  • Q : Determine opportunity cost of making an

    The opportunity cost of making an exact alternative is: (i) useful primarily as an indicator of relative prices. (ii) its nominal costs into terms of all other goods. (iii) the information which guides your decision. (iv) measured through the subjecti

    		•