- Financial flows Deregulation of financial markets (less rules and regulations in currency markets and foreign investment) led to a rapid increase in FDI and portfolio investment. Investment makes economies more integrated as economic changes in one country influence others (CONTAGION e.g. negative effects such as the GFC and the EDC or positive effects such as new technology and booming economies). The main benefits are that it enables countries to finance their domestic economy even if domestic
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day to day. The economic explanation of overshooting comes from the interest parity condition. Question 4 (a) Using the AA/DD framework‚ explain the separate effects of a temporary monetary expansion and a temporary fiscal expansion on the exchange rate‚ output and the current account. [10 marks] Effects of a Temporary Increase in the Money Supply An increased money supply shifts AA1 upward to AA2 but does not affect the position of DD. The upward shift of the asset market equilibrium schedule
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technology. Thirdly‚ the time that innovators have to build an advantage before other firms enter the market. And finally‚ the disposal of complementary resources. However‚ companies that own and influence industry standards are those capable of earning returns that are unmatched by any other type of competitive advantage. And therefore the existence of Standard Wars‚ that are the battle for market dominance between incompatible technologies. Virtually every high-tech
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BRIBERY SCANDAL AT SIEMENS AG Abstract: This case discusses the bribery scandals that were unearthed at Siemens AG (Siemens) in 2006 and 2007. There were a series of scandals that involved some of the company’s employees bribing foreign officials to gain contracts and creating slush funds for this purpose. In another case‚ the company was accused of bribing labor representatives on the supervisory board in order to gain their support for its policies. After the German authorities conducted raids
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Mehdi Al-Katib AHE Int. Politics – Development 26/03/11 To what extent does globalisation help economic development? Joseph Stiglitz‚ Nobel Laureate and former World Bank Chief Economist defined globalisation as “Fundamentally‚ the closer integration of countries and people of the world which has been brought about by the enormous reduction of costs of transportation and communication‚ the breaking down of artificial barriers to the flow of goods‚ services‚ capital‚ knowledge
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Argos and Littlewoods Price Fixing Arrangement 1. The oligopolistic features of the toy market are that there are two dominant retailers that dominate the market. There is a significance of advertising‚ such as them trying to dominant the price of their products. Lastly‚ there are no barriers to entry. These two firms have cost advantages due to the expansion of the company. In a perfectly competitive environment Hasbro‚ Argos‚ and Littlewoods wouldn’t have been able to have a price-fixing agreement
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the case of capital flight‚ in which mass migration of financial capital is involved. Causes of Brain Drain Normally causes of outflow of talented emigrants for developed market economies are covered in general by means of push-pull model .Push and pull factors regarding brain drain appear to be rooted in the unequal economic development of the emigration and immigration countries. Push Factors Agha Khan Medical University conducted study about the brain drain of (doctors) from Pakistan. As per
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BEC 1034 MICROECONOMICS TUTORIAL 1 (Chapter 1: Ten Principles of Economics) 1. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies‚ wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. 2. "There is no such thing as a free lunch‚" is used to illustrate the principle that a. goods are scarce. b. people face
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REVIEW: MIDTERM #2 MICROECONOMIC PRINCIPLES-1102‚ section #11 Professor Ardy Lynn Wurtzel SEAEINNSruEB 1. Please use Sarah’s Utility chart below to determine what combination of Clothing and Shoes would maximize her utility (find her consumer eq uilibrium)-10pts. [1lzt: Complete the charl’s (1) MU/$ column‚ the (2) TU (Clothing & Shoes) column and the (3) Income Spent column. This will allow you to solve for consumer equilibrium.] Price (per unit): S1O.0O MU (cr)/s SARAH’STOTAL INEOME P-rjeE@_Ss
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Media Marketing What it is: Social media marketing refers to the process of gaining website traffic or attention through social media sites. Today it is the WORD OF THE MOUSE that is creating business. Due to this‚ Social media has become a platform which increases communication for organizations‚ fosters brand awareness and often‚ improved customer service. Additionally‚ social media serves as a relatively inexpensive platform for organizations to implement marketing campaigns. What it gives: This
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