International product life cycle
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.
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.
In a completely employed economy, the higher the yield of capital goods, and the bigger its: (1) Present living standards. (2) Present output of consumer goods. (3) Growth of capacity for the future production. (4) Rates of inflation and unemployment.
Supply of foreign exchange: (A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
safeguard against the crisis of confidence in system explain
Examining US–Canadian imports-exports and analyzing a call to protect the US lumber business.
‘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?’
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.
Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers
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