International product life cycle
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5. What are the factors responsible for the recent surge in international portfolio investment?
Who rediscovered Bachelier’s thesis?
Balance of payment Accounts: It is the systematic record of all economic transactions among the residents of a country and rest of the world in a specified period (1-year) of time.
Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.
Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers
‘How is the equilibrium £:€ exchange rate presently determined? When UK was aiming to adopt the euro in the next to future we would be predicted to ‘shadow’ the euro for a while (the £:€ exchange rate would change merely among v
Flexible (or floating) exchange rate system: This is a system in which exchange rate is found out by forces of demand and supply of the foreign currencies concerned in the foreign exchange market. There is no official interference in the foreign excha
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : Define induced investment Induced Induced investment: It is a type of investment that is of profit motive in nature.
Induced investment: It is a type of investment that is of profit motive in nature.
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