Influence of supply in exchange rate
If exchange rate of foreign currency downs or falls its supply too falls. Elucidate how? Answer: If exchange rate downs or falls, experts become less gainful therefore supply of foreign currency via exports falls.
If exchange rate of foreign currency downs or falls its supply too falls. Elucidate how?
Answer: If exchange rate downs or falls, experts become less gainful therefore supply of foreign currency via exports falls.
Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers
Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.
‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
I NEED TO UNDERSTAND MORE ABOUT International product life cycle
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Induced investment: It is a type of investment that is of profit motive in nature.
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
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Explain all the approaches of Paul Samuelson.
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